We live in a digital world.
From e-commerce sites to banking, every industry today is going the digital route. As consumers become more empowered, they expect the convenience and quality of service that comes with digital transformations.
Naturally, the healthcare industry cannot remain far behind in terms of digital innovations. Yet studies suggest that compared to other industries such as retail and finance, the healthcare sector significantly lags behind when it comes to digital transformation.
What is the reason for this? The simple answer is that digital transformation can be expensive, and it’s often not easy to gauge the ROI of digital initiatives. This naturally leads to healthcare establishments, especially the smaller ones, shying away from digital innovations.
Yet when evaluated rightly, digital innovations in the healthcare space can lead to better patient service. At the same time, this can also help to bring down establishment operating costs and create an environment of mutual benefit.
That’s why today, we are here to help you with a complete guide for measuring the ROI of healthcare innovations. After going through this guide, you’ll be able to ensure that you can measure the returns on your digital investments with acuity.
Measuring ROI For Digital Healthcare Innovations
1. Start With Benchmarking
When evaluating the ROI for a particular digital innovation, you need to have a standard against which you can compare your progress. This is exactly where proper benchmarking comes in. By comparing your progress with that of other leading organisations, your business can make the right moves towards improvements.
Proper benchmarking not only leads to correct ROI evaluation, but it also provides your business with a clear understanding of the competition. Also, when benchmarking, make sure you’re not comparing apples to oranges.
2. Consider Both Hard And Soft Savings
Healthcare is a continually evolving industry. Ranging from patient preferences to legislative reforms, the changes are always in a state of flux. Add to that the rising operational costs, and you’ve got a veritable tangle in your hands.
In such a situation, evaluating the ROI of a digital transformation initiative can become tough. That’s why we recommend recognising both hard as well as soft savings when measuring ROI. Hard savings refer to direct monetary spending and returns.
Soft savings, on the other hand, refer to intangible benefits such as lowered stress among employees and increasing customer satisfaction levels. Both need to be given equal importance when measuring the ROI of digital healthcare initiatives.
3. Define The Right KPIs
Once you’ve established the benchmarks and recognised the areas across which you should be measuring benefits, it’s time to define the correct KPIs for measuring the same. This includes examining and measuring ROI from the perspective of patients, healthcare providers, and communities as a whole.
When defining KPIs, the focus should be on maximising the benefits to community and patients, while minimising costs. This approach can help to simplify the process of healthcare ROI measurement.
4. Include All Departments
When measuring digital ROI, there always remains the risk of the results becoming skewed based on who’s measuring them. ROIs can vary depending on the KPIs and cost metrics that you choose to include or leave out.
That’s why to get a comprehensive picture of the ROI, it’s imperative that you include all departments in the calculative process. Doing so gives an all-inclusive ROI measurement that ensures the focus remains on the entire organisation as a whole, and not on any particular department or sector.
Healthcare is an essential pillar of the community, and introducing digital innovation helps to improve the quality of service. The above four steps can help healthcare business leaders define, measure, and make decisions based on digital ROI.
And in that process, KPeyes can be your trusted digital partner. Using state-of-the-art KPI measurement processes, we can help you correctly evaluate the ROI on your digital healthcare initiatives.
Whether you’re a small healthcare facility in Australia, an already established organisation or just starting out, we are ready to help. Think of us as your in-house KPI measurement team with all the perks of an external service.
Contact us today to know more.