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Movement Retraining using Real-time Feedback of Performance
Published on: January 17, 2013
Measuring the benefit of performance improvement and decision support
1VHA West Coast, Pleasanton, CA 94588, USA. arosenst@vha.com
Summary
Healthcare decision support strategies improve care quality and cost-effectiveness but incur costs. This study outlines a methodology to measure the financial impact, including cost avoidance, of these vital health IT initiatives.
Area of Science:
- Health Informatics
- Healthcare Management
- Health Economics
Background:
- Healthcare providers implement decision support strategies to enhance care quality and cost-effectiveness.
- These strategies, while beneficial, involve significant costs, necessitating financial assessment.
- Increasing technology and labor resources in healthcare demand robust evaluation methods.
Purpose of the Study:
- To present a methodology for assessing the financial impact of healthcare decision support activities.
- To detail the measurement of direct and indirect costs associated with these strategies.
- To quantify both qualitative and quantitative benefits derived from decision support implementation.
Main Methods:
- Utilizes a return-on-investment (ROI) methodology adapted for healthcare.
- Compares service-related operating expenses against revenue gains.
- Focuses on cost avoidance as a key benefit metric, distinct from traditional revenue enhancement.
Main Results:
- Establishes a framework for evaluating the financial returns of decision support systems.
- Differentiates between direct/indirect costs and qualitative/quantitative benefits.
- Highlights the importance of cost avoidance in healthcare ROI calculations.
Conclusions:
- A structured methodology is crucial for assessing the financial viability of healthcare decision support.
- Understanding cost avoidance is key to accurately measuring the ROI of health IT interventions.
- This approach enables informed investment decisions for improving healthcare efficiency and outcomes.
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