Evaluating Costs, Benefits, and Return on Investment for Disease Management Programs

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Abstract
For disease management programs to survive the scrutiny of today's competitive environments, their value must be clear. From a management perspective, disease management programs must demonstrate a positive economic return. How should this issue be approached, and what economic issues should be considered? First, programs should target patient populations that consume disproportionate amounts of healthcare resources. Once disease management program opportunities have been identified, a basic model can be used to evaluate program costs, potential benefits, and return on investment. Can the expenditures used to develop and implement a disease management program be justified from a return on investment perspective? This article serves as a primer on the use of a financial model to answer that question.

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