The Complete Business Case for Healthcare Technology
Value on Investment (VOI) vs. Return on Investment (ROI)
ROI answers one question: How many dollars does this solution return to the hospital?
VOI answers another: How does this solution improve the way care is delivered?
Healthcare organizations need both to fully evaluate the impact of technology investments.
What is Return on Investment (ROI)?
Measures: Financial return
Answers: How many dollars does this solution return to the hospital?
Examples:
- Reduced labor costs
- Lower overtime
- Technology consolidation
- Productivity gains
What is Value on Investment (VOI)?
Measures: Organizational value
Answers: How does this solution improve care delivery?
Examples:
- Faster care coordination
- Better clinician experience
- More reliable workflows
- Improved patient outcomes
ROI vs VOI: What's the Difference?
Return on Investment (ROI)
- Easier to quantify
- Supports budgeting decisions
- Looks at dollars
Value on Investment (VOI)
- Often combines quantitative and qualitative measures
- Supports strategic decision-making
- Looks at outcomes that drive long-term success
Why Healthcare Organizations Should Measure Both
Many healthcare technology investments create organizational value before they generate measurable financial returns.
For example, improving clinical communication and care coordination can immediately lead to:
For example, improving clinical communication and care coordination can immediately lead to:
- Faster response times
- More reliable workflows
- Better patient outcomes
Over time, those improvements often translate into measurable financial results, including:
- Lower overtime costs
- Reduced staff turnover
- Greater operational efficiency
VOI often becomes tomorrow’s ROI. Measuring both provides a more complete picture of a technology investment’s impact.
Measuring Both Financial and Clinical Impact
When evaluating communication and workflow technology, healthcare leaders should consider the following questions. Together, the answers to these questions create a more complete business case.
ROI Questions
- How much administrative time can we eliminate?
- What operational costs can we reduce?
- Can we consolidate existing communication tools?
- What labor efficiencies can we achieve?
VOI Questions
- Will clinicians spend less time tracking down colleagues?
- Can we reduce delays in critical workflows?
- Will communication become more reliable during high-acuity events?
- Does the solution improve the experience of patients and care teams?
Ready to quantify both financial return and organizational value?