May 25

Using ROIs To Get More Of Your Healthcare Value Analysis Projects Approved


There is a hard way (your opinion) and an easy way (ROIs) to get more of your healthcare value analysis projects or investments approved. This is especially true when other projects or investments are competing for your healthcare organization’s same limited dollars.

While your opinion might be right about a value analysis project (e.g., saves time and costs less), you will need to prove it mathematically to your bosses so they too can believe your claims. The best way to do so is to show them, with data, the return-on-investment they will receive in dollars and cents by approving your value analysis project. The formula for ROI is:

                ROI = (Gain from Investment) – Cost of Investment

Cost of Investment

The good news is there are many ROI calculators on the internet to help you to quickly calculate your ROIs without the need to even turn on your calculator.

To be credible, your “gain from investment” figure should be conservative, realistic, and estimated over the life of the commodity. For example, an I.V. pump has about a five-year life, so your gain from investment should be only for 5 years. Your “cost of investment” needs to include all costs associated with the acquisition (i.e., freight, set up, maintenance, energy, labor, parts, etc.) over a five-year life.

Another powerful persuasion tool is a written ROI CASE STUDY of how another customer was able to successfully employ the solution you are recommending with a high ROI, and then showing the specific benefits and results of the project you are championing. This is considered an independent validation of your project and lends credence to your message.

No matter which method you decide to use (by the way, we like to use both methods together) to bring home the value of the project you are recommending for approval, it won’t be approved unless you can separate your opinion from the decision-making equation. This can easily be accomplished when you talk about return-on-investment vs. how you feel about a particular project or investment.

Trust us when we tell you that using ROIs is the easiest way to get your big projects, small projects, or investments quickly approved with less hassle, in less time, and with more rapidity.

Articles you may like:

Hospital Value Analysis Customer Surveys: To Survey or Not To Survey

Healthcare Supply Chain: Moving Up to the C-Suite

Hospital Value Analysis: Missing Success Elements

Request Demo of SVAH’s Value Analysis and Utilization Tools


Healthcare Value Analysis, Hospital Value Analysis, ROI, ROIs, supply chain, value analysis project, value analysis projects

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