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.
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
$1,000 that earns $50 ◦ ($1050 - $1,000)/ $1000 =.05 or 5% ROI $100 that earns $20 ◦ ($120 - $100)/$100 =.20 or 20% 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.
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)
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