Calculating the Return on Investment of Mobile Healthcare

The R.O.I. Algorithm

Basic Algorithm*

E.R. Cost Avoided + Value of Quality Life Years Saved Cost of Mobile

Health ClinicR.O.I.

($1,719,295 + $18,219,022) / $565,700 = $35

* All data based on 2008 Family Van Data and values as calculated in accompanying Algorithm worksheet

E.R. Cost Avoided

cost of preventable E.R. visit (A) minus cost per visit of mobile health clinic (B)

number of mobile health visits that prevent an E.R. visit (E)

E.R. cost avoided (F)

(A - B) * E = F

(923 - 117) * 2,133 = $1,719,295

Calculating Avoidable E.R. Visits

Total Visits

Percentage of visits expected to otherwise have resulted in an E.R. visit *

number of mobile health visits that prevent an E.R. visit (E)

4,848 * 44% = 2,133

* Cunningham, Peter J.: HealthAffairs25(2006): w324–w336; 10.1377/hlthaff.25 .w324

Value of Quality Life Years Saved

Number of Quality Adjusted Life Years saved (QALYs)

Value of a Statistical Life Year (VSLY)

Relative Value of Quality Adjusted Life Years Saved

260 * $70,000 = $18,219,022