Mr Louis Servizio (Brazil)
Workshop

Name
Mr Louis Servizio

Degree
MS from MIT in Finance

Company
Chestnut Global Partners do Brasil, Ltda.

Presentation Title
De-Mystifying EAP ROI Calculations: How to calculate the ROI of your EAP

Content Focus Area
Industry Level
Metrics and measurement of EAP

Biographical information related to the topic
I am one of the leading international experts in the field of calculating the ROI of prevention programs focused on preventing behavioural, wellness and occupational health issues, and developing strategic plans for the prevention of disease based on ROI. I have developed a decision support methodology and software (most widely used worldwide) that quantifies the economic costs of mental and physical issues, including productivity losses (presenteeism and absenteeism), turnover costs, accidents and disability/claims (medical costs are also included if desired). My educational and professional background uniquely qualifies me: an MS from MIT in Finance; A degree in Mathematics; Certified Financial Advisor, and professional experience as a leading developer of methodologies for calculating productivity losses. I also manage an EAP so I practice what I preach.

Abstract
Workshop
The half-day session will teach a step by step process of how to determine and estimate savings generated by an EAP and utilize the results to calculate the ROI from an EAP investment. We will cover some financial theory (present value and IRR) and how to calculate productivity losses. For WOS users, it will show participants how to convert WOS results into financial terms (for non WOS users, how to use normative data). It will also demonstrate on financial theory and technology is applied within healthcare.

Learning Objectives:

  • How to estimate prevalence of issues addressed by EAP’s;
  • How to identify and calculate each type of savings impacted by an EAP: medical costs or insurance premiums, presenteeism, absenteeism, accidents, and turnover;
  • How to calculate the savings in out of pockets expenses among employees with access to an EAP;
  • What is an Internal Rate of Return, Net Present Value, and Cost Benefit Ratio and how to calculate each using the data calculated above;
  • How to calculate breakeven PEPM and utilization rates;
  • How to present results internally and to decision makers.Plenary Session
    This will be a more abbreviated session as compared to the Workshop, covering general ROI concepts.

Session Description
“Taking the Mystery out of EAP ROI Calculations”.
The concept of ROI is of much interest within the preventive care field. However, outcomes, financial theory and measurement techniques are generally not covered in traditional Benefits and HR educational program. The common-sense approach being taught at the Conference will take the mystery out of these calculations. Participants will learn that an EAP is a superb investment, can successfully compete for corporate funding among alternative investments, and that applying ROI analyses to EAP greatly enhances the probability of approval and continuance of an EAP.

Learning Objective 1
How to identify and calculate each type of savings impacted by an EAP, including medical costs/insurance premiums, presenteeism, absenteeism, accidents, and turnover.
Learning Objective 2
What is an Internal Rate of Return, Net Present Value, and Cost Benefit Ratio, how to calculate each for EAP investments, and how to present results.
Learning Objective 3
How to calculate the savings in out of pockets expenses among employees in EAP’s.

Audience Level
Intermediate