Page 2 DeterminingtheROIfromRemotePatientMonitoringAPrimer

Technology costs will vary between vendors and their value propositions. Many RPM solutions include
dedicated base stations (which can ask questions for daily assessments via text or audio), with optional
peripheral medical devices that vary based on condition for monitoring biometrics such as weight and
blood pressure. For the purposes of our example CHF population, the organization chooses a vendor
that markets a base station, and also chooses to have a connected weight scale and blood pressure cuff
for each patient. The vendor also charges fees for telecommunications and application services. These
charges add up to another $50 per patient per month or $600 per year.

There are other costs surrounding implementation and ongoing operations. These costs include:
• Developing a program design and clinical protocols
• Training staff
• Outreach to patients to engage them in the program
• Outreach to physicians and other providers who will support patients in the program
• The cost of getting hardware to a patient, installing it, and training the patient in using it
• The cost of retrieving the hardware when a patient dis-enrolls

For the purposes of our example, these costs – some amortized one-time costs, others recurring costs –
add up to an additional $20 per month, or $240 per year.

Technology costs may also vary depending upon a rental or purchase contract. For example, if
purchasing equipment, there may be costs associated with maintenance, inventory management, and
software licensing. If renting equipment, there may be costs associated with refurbishing and shipping/
handling.

What’s the ROI?

For the purposes of this example, the gross beneit of the intervention is $4,000 per patient per year.
The gross cost is $1,440. This would imply an ROI of 278 percent, meaning, $2.78 would be returned
for every dollar invested in the program. Seeing that the program still would produce a positive ROI
even if the gross cost reduction were only half that of the 20 percent used in the analysis – or an ROI of
139 percent – the organization decides to implement a telehealth-based care-management program.

ROI Model Example
Beneits of RPM Program
Average per patient per year (PPPY) healthcare costs $20,000
Estimated gross savings percentage 20%
Estimated PPPY gross savings $4,000

Costs of RPM Program
Average labor cost PPPY $600
Average technology cost PPPY $600
Amortized implementation costs and other operating costs $240
Total cost PPPY $1,440

PPPY net savings $2,560
ROI 278%

Remote Patient Monitoring Diffusion Grants Program Center for Technology and Aging
2 Afiliated with the Public Health Institute
Supported by a grant from The SCAN Foundation