Transcript Calculating the Return on Investment of Mobile Healthcare

Calculating the Return on
Investment of Mobile Healthcare
The R.O.I. Algorithm
Basic Algorithm*
E.R. Cost Avoided +
Value of Quality Life
Years Saved
Cost of Mobile
Health Clinic
R.O.I.
($1,719,295 + $18,219,022) / $565,700 = $35
* All data based on 2008 Family Van Data and values as calculated in accompanying Algorithm worksheet
E.R. Cost Avoided
cost of
preventable E.R.
visit (A) minus
cost per visit of
mobile health
clinic (B)
number of
mobile
health
visits that
prevent
an E.R.
visit (E)
(A - B) * E = F
(923 - 117) * 2,133 = $1,719,295
E.R. cost
avoided
(F)
Calculating Avoidable E.R. Visits
Total
Visits
Percentage of visits
expected to
otherwise have
resulted in an E.R.
visit *
4,848 * 44% = 2,133
* Cunningham, Peter J.: HealthAffairs25(2006): w324–w336; 10.1377/hlthaff.25 .w324
number of
mobile
health
visits that
prevent
an E.R.
visit (E)
Value of Quality Life Years Saved
Number of
Quality Adjusted
Life Years saved
(QALYs)
Value of a
Statistical
Life Year
(VSLY)
260 * $70,000 = $18,219,022
Relative
Value of
Quality
Adjusted
Life Years
Saved