Healthcare executives are increasingly mindful of ROI. But thinning margins brought about by the ACA, Medicare, and Medicaid is requiring healthcare systems to tighten their ROI measurement even further if they want to remain solvent.
However, ROI is often not measured strictly by dollar improvement. It often involves determining whether the ROI will yield a positive payback and have value for the business. This benefit-driven model goes beyond quantitative savings and takes into account qualitative benefits, such as improving patient satisfaction or streamlining financial or clinical operations.
When quantifying the value component of the ROI formula, remember the acronym TVD – Time, Volume and Dollars. If you can define the present Time, Volume and Dollars necessary to complete a process, the current project’s value can also be derived.
This formula forces you to define what the success factors look like and then breaks down those factors into specific numbers. The formula of Time, Volume and Dollars in the Present minus the Time, Volume and Dollars of the successful project will yield the value.
Data-driven organizations that engage in measuring both quantitative and qualitative outcomes can often rank and prioritize projects and gain resource support more quickly.
Contact us to learn more about how you can meet your cost and ROI expectations while improving patient financial experience and streamlining processes.