A BENEFIT-TO-COST ANALYSIS OF A WORK-SITE HEALTH PROMOTION PROGRAM

An analysis of the benefit-to-cost ratio of a major health promotion program was conducted for the years 1986 through 1990, with projections to the year 2000. Program costs for personnel, capital expenses, materials, and rent were determined and compared with program benefits (discounted to account for increasing pension liability) for health care cost savings, increased productivity, decreased absenteeism, decreased life insurance claims, and program-generated income. After adjusting future monies to net present value, a benefit-to-cost ratio of 3.4 was estimated for the program. Despite the limitations of the study design, the authors concluded that the program realizes a positive return on its investment. Several program recommendations are presented to increase the probability of achieving positive benefit-to-cost ratios in future program offerings.