3 Yardsticks to Measure the ROI of Digital Health Investments

Healthcare leaders have invested heavily in digital health products this decade, but over 70 percent have yet to see new technology actually lower their expenses. That doesn’t mean these solutions aren’t delivering value, however. In fact, 50 percent of executives acknowledge that their metrics could be missing the fuller picture of ROI.

In truth, cost savings are just one way to measure ROI. Here, I’ll share three alternative yardsticks that can clarify how digital health products benefit patients, clinicians, and support staff.

1. Staff Efficiency

Physicians spend an average of 15.5 hours a week on administrative tasks. That burden is a huge driver of burnout: there simply isn’t enough time in the day to consult with patients, fill out paperwork, and handle additional tasks as they come up.

Digital health solutions can ease this burden for both physicians and support staff. For instance, an AI-powered medical transcription app can take notes for clinicians during visits so they can spend more time interacting with patients. And a digital scheduling tool can automate appointment reminders to save staff time.

You can measure the resulting time savings to see whether your digital health tools boost efficiency. If they do, you’ll likely see lower burnout and turnover rates. But be careful not to add too much pressure to race against the clock; such efforts could easily backfire.

A real-world example: I worked with a hospital that implemented virtual appointment check-ins at the start of the COVID-19 pandemic. It was a huge time saver for front desk staff. And patients loved the tool because they didn’t have to sit in a crowded waiting room and risk viral exposure. Instead, they simply tapped a link to check in as soon as they arrived.

But the lab team only had 21 minutes to work with each patient from the moment they arrived. If a patient checked in from the parking garage or hospital lobby, that could eat up valuable time. So lab techs felt pressured to rush through blood draws and vitals in order to hit their KPI. The result was a spike in error rates that impacted patient care.

The takeaway here? Make sure your digital health tools aren’t replacing one burden with another. The goal should be to make physicians’ and staff’s lives easier across the board.

2. Patient Time Savings

Today’s patients are used to consumer experiences that put a premium on their time. Think overnight shipping, callback queues, and near-instant live chat support. 

The patient experience often lacks that same fast-paced feeling. Sure, patients don’t want to be rushed through an in-person appointment. But they also don’t want to wait weeks for test results or have to call in to schedule a follow-up.

Digital health solutions can save patients time. A secure provider messaging portal can provide patients with the information they need to come in for a specific set of symptoms as well as interact with the physician and office staff. Couple it with an AI agent to provide patient context for the professional, and you can get productivity gains from the office staff while also saving time for the patient. A digital scheduling tool can spare folks from a 15-minute call on their lunch break. And a self-service app can let patients view test results as soon as they’re complete. 

These time savings can have a huge impact on patient satisfaction. I recommend measuring them early and often; they can be a strong sign of positive ROI.

3. Patient Outcomes

Many patients already use digital health products to monitor their own health. Someone with hypertension might use a Fitbit to make sure they get enough steps per day. Or log their meals in MyFitnessPal to keep tabs on their sodium intake.

With the right integrations, you can empower patients to share this data with their care team. In the example above, a physician might notice a severe drop in daily steps between appointments. At the patient’s next visit, they might ask if there’s a reason for the dip – like a busy season at work that’s made it tough to fit in a daily walk. Then, the patient and physician can collaborate to find more accessible at-home exercises.

If the patient is on an antihypertensive, the physician might even ask them to log their doses in a medication management app for a few months. This way, the physician can keep an eye on medication adherence until the patient’s busy season is over.

The bottom line? Digital health data can give physicians a fuller view of each patient. That’s key to making interventions that boost patient outcomes. Monitor this impact to highlight the ROI of your digital health investments.

Measure ROI from Every Angle

I mentioned earlier that most healthcare leaders haven’t seen digital health investments reduce their expenses.  But the reality is that all of the “yardsticks” we’ve explored can help reduce costs or boost revenue – even if indirectly. 

Better patient outcomes mean fewer costly readmissions. More patient time savings can lower patient churn. Greater staff efficiency can reduce turnover and help cut down on hiring and training costs.

By expanding how you define and measure ROI, you can more easily prove the value of your tech – and pave the way for new investments.

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