Return on Investment (ROI) is part of every capital budgeting and decision-making process. How should we calculate ROI? Is it using “soft” or “hard” dollars? How long will it take to start seeing ROI? The basic tenants of the ROI equation are:

  • You are going to make an investment in something – for our purposes, let’s make it a CC&C project.
  • That project will have impact – hopefully in many areas. We measure that impact based on the project’s ability to reduce costs and, if it is a really great project, to increase revenues.
  • We then factor in time – the most valuable component – to show how long it will take for these impacts to reap returns.

So let’s look at the ROI components of a CC&C deployment.

Reducing Costs
One of the better studies on the potential for CC&C to reduce costs was conducted by Spyglass Consulting Group.  As reported in an article by FierceMobileHealthcare , the average US hospital’s inefficient communications cost the facility $1.75 million each year.

So, how do you attack this waste? By providing a CC&C solution that is widely adopted for all clinicians – both inside and outside the hospital. The broader the deployment, the greater the cost savings.

Increasing Revenues
Impacting revenue is always a challenge. However, here are a few use cases where hospitals have deployed smartphones and CC&C software to increase revenues.

  • A busy trauma center focused on patient throughput with the CC&C solution as the centerpiece. The software delivered needed clinical data in real time as “push notifications” to the smartphones at the point of care. Better patient information led to better and more efficient decisions, which led to fewer diversions and more revenue.
  • A “Billing Module” add-on was deployed on the smartphones used by the ED staff. Using the smartphone camera and consumables pick-list to capture items used in an ED procedure was much more efficient than the old method – pencil and paper – and captured revenue items that previously went unbilled.

The “top line” is critical in developing an ROI since it’s much more measurable and tougher to influence, but a quality CC&C deployment will provide you with new revenue opportunities.

Timely Impact
The final and most influential aspect of an ROI calculation is the time required for these impacts to take effect. A million-dollar revenue increase today that continues going forward is much more valuable than waiting three more years for the CC&C project to have the same impact.

Immediate results, however, is where a CC&C deployment shines. We’ve seen hospitals experience an improvement in patient quality measures (as shown in their Press-Ganey scores) as quickly as one week after go-live. A broad, smartphone deployment with CC&C software should deliver results very quickly.

Summary
Making a capital investment in CC&C requires thought and measurability. Estimating your project’s potential ROI is no small task however, make sure you include and analyze all three impact areas: cost reductions, increased revenues and timeliness of impact.