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Return on Investment: Explanation and a Case Study
Todd B Smith1, Teresa D Welch, Teresa Barry Hultquist
1Capstone College of Nursing, The University of Alabama, Tuscaloosa, Alabama (Drs Smith and Welch); Omaha Division, University of Nebraska Medical Center College of Nursing, Omaha, Nebraska (Dr Hultquist); Department of Graduate Studies, Cizik School of Nursing, The University of Texas Health Science Center at Houston, Houston, Texas (Dr Crider); and Department of Graduate Studies, College of Nursing, Florida State University College of Nursing, Tallahassee, Florida (Dr McHugh).
Abstract:
Nurses are uniquely positioned to significantly impact organizational and system improvement through improving quality and reducing costs. Using an evidenced based tool to identify costs and the financial benefit involved in any quality improvement project is invaluable in developing and evaluating proposals and allocation of resources to support the organization's financial health and viability. The return on investment analysis is an essential accounting tool that will provide nurse leaders with critical information quantifying costs and benefits of both financial and nonfinancial metrics to identify the feasibility, efficacy, risk or efficiency of a proposed project.
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