This doesn’t focus on recovery management, but a new study supports the argument that disease management saves money.
In 2003, Pepsi started an employee health program that included risk assessments, on-site wellness events, lifestyle management, disease management, complex care management, telephone nurse advice lines, and maternity management. By 2011, there were 5 telephonic lifestyle programs (weight management, nutrition management, fitness, stress management and tobacco cessation) and 10 telephonic chronic disease management programs (asthma, coronary artery disease, atrial fibrillation, congestive heart failure, stroke, hyperlipidemia, hypertension, diabetes, low back pain, and chronic obstructive pulmonary disease).
Of the greater than 67,000 Pepsi employee participants, 2,610, 17,432 and 2,162 persons with an average 6.4 years of participation in disease management, lifestyle management and both, respectively, were matched, using propensity scoring, to Pepsi non-participants. The two groups’ insurance claims expense and absenteeism were compared.
Overall, all the participants had an average of $360 per member per year (PMPY) less cost compared to the non-participants. The participants’ vs. the non participants’ cost curves diverged and became statistically significant after 3 years
However, it turned out that the savings was confined to the disease management population, which had a lower cost of $1632 PMPY. Participants in the lifestyle management had negligible savings. Disease management had a return on investment of $3.78
Participants in both disease management and lifestyle programs had a savings of $1,920 per year.