MHN Announces EAP Calculator to Measure Cost Savings of Effective EAP Treatments: ROI Tool Incorporates MHN Research

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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.

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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This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.

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Sondra Maas
MHN
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