Estimating Return on Investment From Implementation of Individual Placement and Support

Area of Science:

• Health Economics
• Rehabilitation Services
• Employment Support

Background:

• Individual Placement and Support (IPS) is an evidence-based approach to supported employment.
• Assessing the economic viability of IPS is crucial for widespread implementation.
• Norway's welfare system provides rehabilitation benefits to individuals aged 18-40.

Purpose of the Study:

• To evaluate the return on investment (ROI) of implementing Individual Placement and Support (IPS) in Norway.
• To compare the economic outcomes of IPS implementation versus areas without IPS.
• To analyze costs and benefits from both societal and public-purse perspectives.

Main Methods:

• A four-state, 4-year Markov model was utilized for the analysis.
• Data were sourced from longitudinal registry data, IPS cost data, and existing literature.
• The study included 561 new recipients of a time-limited, health-related rehabilitation welfare benefit.

Main Results:

• Societal ROI was 4.76 (Int$2.6 million net benefits), and public-purse ROI was 1.34 (Int$240,000 net benefits).
• IPS implementation generated 67.8 additional full-time equivalent (FTE) work years annually.
• A 24% reduction in work assessment allowance (WAA) benefits would be needed for IPS to yield a negative ROI.

Conclusions:

• IPS demonstrates a positive ROI from societal and public-purse perspectives within 1 and 3 years, respectively.
• The positive economic impact of IPS is evident even under conservative assumptions.
• Broader benefits, including reduced healthcare utilization, further enhance IPS's economic value.