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Question: In an effort to reduce the costs of back-related workers' compensation claims, Miracle Hospital implemented a safety program that teaches employees the proper mechanics of bending and lifting. The training program cost $10,000 to develop. It costs $15,000 per year to implement through mandatory on-line training for all employees, in-person demonstration training, and program evaluation. In year 1, the average cost of back-related workers' compensation claims was not reduced at all. In year two of the program, the average cost of back-related workers' compensation claims was reduced by $15,000. Finally, in year 3, the average cost of workers' compensation claims was reduced by $40,000.
Based on your analysis of ROI, what is your recommendation for the future of this training program (expand, eliminate, monitor)? What is your rationale?
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