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Using Return on Investment (ROI) to Guide Programmatic
Health
Sara Sack, DirectorAssistive Technology for Kansans
Shaping a National Collaborative for AT Reutilization Conference, Sept. 16, 2009
Similar but slightly different terms Cost Benefits – a general list. ROI – performance measure to compare
efficiency of different investments. ROI/Business Case – stated definitions and
assumptions and yields some insights on how to improve business in the future.
Cost Benefit, Simple ROI, ROI/Business Case: What Are We Talking About?
ROI = (Gains from investment – Cost of investments) divided by Cost of investment
Which is a better investment? ◦ $1,000 that earns $50◦ $100 that earns $20
Simple ROI Calculation
$1,000 that earns $50◦ ($1050 - $1,000)/ $1000 = .05 or 5% ROI
$100 that earns $20◦ ($120 - $100)/$100 = .20 or 20% ROI
Simple ROI Calculation
Kansas Reuse Program ROI
Simple ROI: Regional Data (3rd Q)
Simple ROI: Regional Data (4th Q)
Comparison of Quarterly ROI
Collection Drive ROI
Collection Drive Adjusted ROI
Assumptions/Benefits◦ Accept only lightly used, high cost or bariatric
DME.◦ Increased DME provider and network partner
involvement.◦ Increased public’s awareness of program resulting
in increased donations and requests.
Collection Drive Complex ROI
Collection Drive Complex ROI
ROI is a useful tool for making program decisions.
Consider conducting ROI for:◦ pickup and delivery,◦ shipping, ◦ collection drives, ◦ methods of cleaning and sanitization (volunteers,
paid staff, contractor, purchase of sanitizing equipment)
ROI is a Useful Tool for:
