Calculating Return on Investment for Disease Management programs

This is an example of how to calculate a return-on-investment using an economic benefit model.

Primary Reference:
https://www.soa.org/files/pdf/Paper4-Economics-of-DM-Programs.pdf

Creating a Return on Investment model for a Disease Management is complicated because it falls on the concept of actually trying to measure utilization (namely hospitalizations and ER visits) that didn’t happen. Thus, an unconventional approach was called for. Due to my training in Economics and after a month or so of research, I found a risk management model and adapted it for my needs. I also contacted the original author of the model (Ian Duncan, FSA, FIA, FCIA, MAAA) in order to get some insight.

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