MHN Announces EAP Calculator to Measure Cost Savings of Effective EAP Treatments: ROI Tool Incorporates MHN Research
Managed Health Network, Inc. (MHN), is announcing today an “EAP calculator” to measure the return on investment (ROI) of effective EAP programs. The model provides a new approach to calculating the business value for the successful EAP treatment of employees -- combining two sets of empirical data to obtain reasonable cost figures that can be replicated, refined and used by employers in making program cost estimates. The tool also measures the “invisible” costs associated with reduced work performance.
Point Richmond, CA (PRWEB) January 11, 2005 -- Managed Health Network, Inc.
(MHN), a subsidiary of Health Net, Inc. (NYSE:HNT), announced today that it has
designed an “EAP calculator” to measure the return on investment (ROI) of
effective EAP programs.
The calculator is based
on a recent MHN study that examined the treatment outcome data on more than
10,000 employees with depression to determine the likely ROI associated with
effective treatment through an EAP. Conducted by George Hargrave, Ph.D. and
Deirdre Hiatt, Ph.D., the study will be published in the Journal of Employee
Assistance and Workplace Behavioral Health, vol. 19(4).
Depression was
chosen as the target disorder because it is the most common mental health
problem in the workplace with the greatest overall impact on job performance. An
average of one out of every 20 employees is depressed, and it is estimated that
by 2020, depression will be the second most prevalent cause of disability in the
world.
The study demonstrated the significant impact of an EAP on this
problem. “Our outcome research showed that two-thirds of employees reported at
least moderate symptoms of depression at the time of intake and approximately
half of the treated employees showed no such symptoms after treatment,” says Dr.
Hiatt, vice president of Quality Management at MHN.
This study data was
combined with research on the lost productive job time (LPT) associated with
depressive disorders, previously reported by Stewart, et al. in the Journal of
the American Medical Association, vol. 289(23). The combined data was used to
derive an ROI calculator based on LPT that showed significant cost savings
associated with the EAP treatment of depression.
The model provides a
new approach to calculating the ROI associated with the successful EAP treatment
of employees. It combines two sets of empirical data to obtain reasonable cost
figures that can be replicated, refined and used by employers in making program
cost estimates. The focus on LPT is of particular interest, because it places a
value on those “invisible” costs associated with reduced work
performance.
“MHN's ROI calculator helps employers make the leap from
intuitive value to truly quantifiable value, making it much easier for benefits
VPs and CFOs to see the impact of the EAP program. We are also developing ROI
calculator tools for some of our other programs such as our Return-to-Work
Programs,” says Steve Kessler, MHN’s director of Business
Development.
“Decisions on purchasing EAP services have traditionally
been made by analyzing satisfaction and utilization data,” says Dr. Hiatt. “But
increasingly, EAP programs are being asked to also show financial return on
investment. We can now do this.”
“The model is also of value because of
its implications for EAP considering treatment for depression, substance abuse,
and emotional problems, but it includes so much more,” says Dr. Hiatt.
“Companies also benefit from EAPs because they produce savings through improved
productivity, morale, employee retention, and appropriate behavioral and health
benefit usage.”
MHN is one of the largest and oldest providers of managed
behavioral health care and Employee Assistance Programs (EAP) in the United
States, serving nearly 10 million members. Based in Point Richmond, Calif., MHN
provides workplace solutions ranging from EAP and behavioral health to
integrated disease management and psychiatric Return-to-Work Programs. MHN's
provider network includes more than 37,000 practitioners and 1,150 hospitals and
facilities throughout the United States.
MHN is a subsidiary of Health
Net, Inc. Health Net is among the nation’s largest publicly traded managed
health care companies. Its mission is to help people be healthy, secure and
comfortable. The company’s HMO, POS, insured PPO and government contracts
subsidiaries provide health benefits to more than 7 million individuals in 27
states and the District of Columbia through group, individual, Medicare,
Medicaid and TRICARE programs. In addition to the behavioral health services
offered by MHN, Health Net’s subsidiaries offer managed health care products
related to prescription drugs, and they offer managed health care product
coordination for multi-region employers and administrative services for medical
groups and self-funded benefits programs.
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Source : http://www.prweb.com/releases/2005/1/prweb196202.htm