The present invention provides a system and method for measuring the
relative economic benefits from services offered by health care plans.
The present invention quantifies value of health care quality by
indicating an economic return on the investment in health care quality,
enabling organizations and businesses to view health care quality in a
familiar paradigm that extends health plan differentiation beyond premium
and benefits. Businesses may employ the present invention to compare
different health care plans or classes of plans, such as accredited
versus non-accredited plans. Specifically, a particular plan or class of
plans may provide improved monitoring, treatment and control of various
medical conditions, and the present invention quantifies the economic
benefits to employers from the improved health care for employees. In one
embodiment, the present invention looks to a set of specific medical
conditions and is based on three key steps. First, the present invention
identifies the overall level of employees at the organization affected by
these conditions. Second, the present invention uses the reduction in
absenteeism and low productivity days made possible by improved
monitoring and control of the medical conditions. Third, the present
invention calculates a monetary valuation to the firm of the reduction in
absenteeism and low productivity days based on the firm's average revenue
per employee, average daily wage, and other parameters.