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

Source: www.cartoonstock.com

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:

Sara Sack, 620-421-8367 or ssack@ku.edu

Questions?