Mar 9, 2009
ROI on Prevention
by Jerry Jaker
A big buzz phrase these days is “ROI.” What’s our Return on Investment? For what we give, what do we get back? And, is it worth it?
As daunting a challenge as ROI for prevention may be, it’s really not an unfair question. Since the science of evidence-based prevention has grown, and since best practices in prevention can be identified and replicated, we should be able to inform and persuade decision makers, funders, and end-users of the inherent value of prevention.
The uphill battle is less measuring ROI, and more selling the value of prevention in a world that has little patience, and that attaches value to expensive and fast solutions. For, human nature being what it is, we tend to buy the deadbolt lock AFTER our neighbor gets burglarized, buckle the seatbelt AFTER driving by a car wreck, and make the dental appointment AFTER the tooth has begun to ache. Still, it is what it is, and prevention programmers can and should be asked about ROI.
We know that among the ways people get hurt with substance abuse are economic costs. The Minnesota Department of Health (2006) regularly computes the economic costs of alcohol abuse in Minnesota—now over $1,000 for every single person in our state. The Health Care Transportation Task Force (MDH) found that for every dollar spent on health promotion and disease management, a ROI of $1.49 to $4.91 was realized. Many employers and workplaces have found similar positive ROIs on prevention, health promotion, and wellness.
A report released by Trust for America’s Health (2008) found that a modest, strategic investment in disease prevention could result in significant savings in U.S. health care costs, up to $6.20 for every dollar investment in Minnesota!
Specific to substance abuse prevention and youth-centered programs, a summary of findings by the University of Oklahoma’s Southwest Prevention Center (2004), indicated that, “despite the use of multiple indicators, varied cost elements, and different program strategies, every study consistently found benefits outweighed costs by at least 2 to 1.”
Model prevention programs tried in multiple settings, formally evalu¬ated and reported in peer reviewed journals—programs like Project Northland, Adolescent Transitions Program, Life Skills Training, Project STAR, and the Minnesota Smoking Prevention Program—report impressive results of measured benefits and costs per youth.
So, it’s not easy to tease out, but it can be measured—and documented— that a positive ROI on prevention is attainable. But it must be good prevention; remember the wag who aptly said, “if an ounce of prevention is worth a pound of cure—an ounce of bad prevention is worth a pound of pure manure!”
Which is why at MIPH and the Minnesota Prevention Resource Center, we continue to work diligently to help move best practices in prevention from “promising exceptions” to a new normal in our state. It’s worth it!
Sources:
Minnesota Department of Health.(2006). The Human and Economic Cost of Alcohol Use in Minnesota.
University of Oklahoma Outreach, Southwest Prevention Center. (2004). Cost-Benefit of Prevention Review of research literature.
Trust for America’s Health. (2008). Prevention for a Healthier America: Investments in Disease Prevention Yield Significant Savings, Stronger Communities.
As daunting a challenge as ROI for prevention may be, it’s really not an unfair question. Since the science of evidence-based prevention has grown, and since best practices in prevention can be identified and replicated, we should be able to inform and persuade decision makers, funders, and end-users of the inherent value of prevention.
The uphill battle is less measuring ROI, and more selling the value of prevention in a world that has little patience, and that attaches value to expensive and fast solutions. For, human nature being what it is, we tend to buy the deadbolt lock AFTER our neighbor gets burglarized, buckle the seatbelt AFTER driving by a car wreck, and make the dental appointment AFTER the tooth has begun to ache. Still, it is what it is, and prevention programmers can and should be asked about ROI.
We know that among the ways people get hurt with substance abuse are economic costs. The Minnesota Department of Health (2006) regularly computes the economic costs of alcohol abuse in Minnesota—now over $1,000 for every single person in our state. The Health Care Transportation Task Force (MDH) found that for every dollar spent on health promotion and disease management, a ROI of $1.49 to $4.91 was realized. Many employers and workplaces have found similar positive ROIs on prevention, health promotion, and wellness.
A report released by Trust for America’s Health (2008) found that a modest, strategic investment in disease prevention could result in significant savings in U.S. health care costs, up to $6.20 for every dollar investment in Minnesota!
Specific to substance abuse prevention and youth-centered programs, a summary of findings by the University of Oklahoma’s Southwest Prevention Center (2004), indicated that, “despite the use of multiple indicators, varied cost elements, and different program strategies, every study consistently found benefits outweighed costs by at least 2 to 1.”
Model prevention programs tried in multiple settings, formally evalu¬ated and reported in peer reviewed journals—programs like Project Northland, Adolescent Transitions Program, Life Skills Training, Project STAR, and the Minnesota Smoking Prevention Program—report impressive results of measured benefits and costs per youth.
So, it’s not easy to tease out, but it can be measured—and documented— that a positive ROI on prevention is attainable. But it must be good prevention; remember the wag who aptly said, “if an ounce of prevention is worth a pound of cure—an ounce of bad prevention is worth a pound of pure manure!”
Which is why at MIPH and the Minnesota Prevention Resource Center, we continue to work diligently to help move best practices in prevention from “promising exceptions” to a new normal in our state. It’s worth it!
Sources:
Minnesota Department of Health.(2006). The Human and Economic Cost of Alcohol Use in Minnesota.
University of Oklahoma Outreach, Southwest Prevention Center. (2004). Cost-Benefit of Prevention Review of research literature.
Trust for America’s Health. (2008). Prevention for a Healthier America: Investments in Disease Prevention Yield Significant Savings, Stronger Communities.
Posted on March 9, 2009 - 8:00am by Jerry Jaker
ROI on Prevention
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