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Mental health benefits have long been categorized as “soft perks”—a moral and cultural imperative, but not a financial one. That’s changing fast. Over 80% of employees now say that how employers support mental health is an important consideration for them when looking at future job opportunities.
As healthcare costs surge, talent markets shift, and workforce expectations evolve, two questions are coming into sharp focus:
What is mental health ROI? And how can organizations accurately measure it?
This article breaks down how to think strategically about mental health ROI, how to calculate it, and why it's one of the most overlooked levers for cost control and workforce performance.
What is mental health ROI?
Mental health ROI (return on investment) is the measurable value an organization receives in exchange for its investment in mental health support programs. It quantifies how improved employee wellbeing translates into lower medical costs, reduced turnover, increased productivity, and fewer absences.
To be clear, ROI = Savings / Investment
- Investment: Program costs (platforms, sessions, internal resources)
- Savings: Financial benefit gained from health plan savings, fewer leaves, improved performance, and retention gains
One important note: You can’t have ROI without including the cost (investment) of the mental health solution. Any meaningful analysis must factor in the full investment.
In addition to direct savings, effective programs also drive cost avoidance—preventing high-cost claims or extended disability leaves before they occur. Over time, this becomes a powerful form of cost containment, especially as healthcare costs continue to rise year over year.
Why mental health ROI matters now
CFOs and Total Rewards leaders are facing urgent pressure to control runaway healthcare costs, with costs projected to have risen 8–9% in 2025 alone.
Traditional EAPs typically see only 2–5% utilization, meaning most employees never get support—leading to unmanaged conditions, ER visits, leaves of absence, and lost productivity. Modern solutions like Spring Health reach 25%+ utilization and deliver fast, evidence-based care pathways that resolve issues earlier and at lower cost.
Unaddressed mental health conditions can quietly inflate costs across multiple fronts:
- Chronic illness management
- Emergency visits
- Detox
- Inpatient care
- Intensive outpatient care
- Out-of-network costs
- Disability claims
- Team performance drag
This is called the “status quo tax,” which is what organizations pay when they don’t invest upfront to reduce high-cost claims.
What common factors influence an organization’s ROI?
How to measure your mental health ROI
While the factors below outline how ROI can be measured, the truth is: You shouldn’t have to do this alone. Your mental health solution should proactively track, analyze, and report ROI for you—connecting the dots between utilization, claims, productivity, and engagement. If that transparency isn’t built in, it’s not just a gap—it’s a risk.
1. Hard cost savings
- Compare health plan claims for members with a diagnosed mental health condition who engage in care versus those who don’t
- Track ER visits, inpatient behavioral health usage, and out-of-network spend
- Measure changes in short-term disability, workers’ comp, and pharmacy costs
2. Soft cost savings
- Track lost work time due to absenteeism (e.g. sick days, mental health leave) and presenteeism (e.g., reduced productivity while at work due to mental health symptoms)
- Analyze turnover patterns, especially in high-stress roles
- Use surveys and performance reviews to gauge engagement improvements
3. Real-time ROI tools
Spring Health’s customers benefit from a real-time, net ROI tracking dashboard, validated by third parties. Organizations can see:
- Dollar-for-dollar impact on their own data
- Guaranteed net savings
- Outcomes broken down by condition, cohort, and provider match
How to calculate your own ROI
How much ROI is possible?
A number of factors can influence an organization’s ROI. But to provide some level of expectation, a peer-reviewed study published in JAMA Network Open showed that employers using Spring Health achieved a 1.9x ROI—a $1.90 return for every dollar spent, net of all program fees.
And while 1.9x ROI was demonstrated in that study across 13,000-plus participants, some organizations experience a nearly 4x ROI on their investment.
Is your organization experiencing mental health ROI?
If your organization has:
- Increased mental health engagement but no formal ROI model
- High turnover in high-burnout roles
- Ongoing spikes in chronic condition claims
…you’re likely missing or underreporting returns.
Even when behavioral health doesn’t show up in claims, its impact is often hiding in presenteeism, retention, and even manager performance metrics.
How to improve mental health ROI
Not all solutions deliver equally. To maximize ROI:
Choose a mental health solution with:
- A diverse, high-quality provider network and fast access to care
- Precision matching between patient and provider for faster outcomes
- Transparent, third-party validated guarantees of net ROI
Prioritize:
- Early identification of high-acuity needs
- Structured in-network treatment pathways
- Real-time data sharing between HR, finance, and clinical teams
FAQ: What employers ask about mental health ROI
What’s considered a good mental health ROI?
Best-in-class programs deliver 1.9x to 4x ROI, depending on engagement levels and population health risks.
Can mental health benefits lower health plan costs?
Yes. A JAMA-reviewed study showed a 30% gross reduction in physical health costs with increased mental health investment.
What should you ensure an ROI study has in place?
When reviewing an ROI study for a mental health program, it's critical to look beyond the headline number. Ask the following questions when evaluating a mental health solution’s ROI claims:
- Were the control and comparison groups thoughtfully developed?
- Are the claims independently verified and validated?
- Does the study transparently and accurately speak to the “I” in “ROI”?
Can mental health ROI be guaranteed?
Yes—mental health ROI can be guaranteed, but only by solutions that are confident in their clinical model and can track real outcomes using your actual claims data.
For example, Spring Health offers the first net ROI performance guarantee in mental health—and it's designed to increase over time, just like the long-term impact of improved mental health.
For every $1 spent on clinical care, Spring Health guarantees
- 1x ROI in Year 1
- 1.5x ROI in Year 2
- 2x ROI in Year 3
This is:
- Guaranteed and adjudicated annually
- Based on your real data, not projections or averages
- Inclusive of all program costs (true net ROI)
Unlike competitors that front-load ROI guarantees, Spring Health recognizes that the financial return grows as more members engage, recover, and sustain their mental health gains. It’s a long-term strategy—not a short-term sell.
Doesn’t increased utilization drive up a solution’s cost? How does that affect ROI?
While it’s true that utilization can drive up the cost of a mental health solution, if it’s driving savings that outweigh that cost, that utilization is driving value to your organization.
For solutions like Spring Health, removing barriers to mental health makes it easier for employees to engage in care. But that increased utilization is actually leading to increased savings and ROI.
How do I prove ROI to my CFO or board?
Use real-time analytics, validated outcomes, and clear before-and-after comparisons in claims, productivity, and retention. Consider a partner offering a guaranteed, adjudicated net ROI, like Spring Health.
Conclusion: Mental health as a margin lever
Mental health is no longer a perk. It’s a lever. One that, when structured well, pays for itself—and then some. With the right platform, integrated analytics, and executive alignment, your organization can unlock substantial and ongoing ROI across cost savings, performance, and stability.
About the Author
About the clinical reviewer
