Page 28 Telehealth and Remote Patient Monitoring RPM for Long Termand Post Acute Care A Primer and Provider Selection Guide 2013

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6.8.4 Online ROI Calculator for RPM The tool bases its calculation of savings on
whether patients change their health care
Once individual investors have been clearly identi- utilization as a result of the program. One of
fied, an estimate of the ROI to the different stake- the advantages of the tool is that it allows users
holders can be calculated. The Center for Technolo- to identify the stakeholder that will bear the
gy and Aging and the Center for Connected Health financial risks or enjoy the financial gains when
jointly developed an online tool to facilitate calcu- service utilization changes. It is important to
lating ROI for a RPM program for the management precede any anticipated increase in utilization
of chronic conditions, like Congestive Heart Failure (home visits, for example) with a minus (-) sign
(CHF). The tool was funded by the California to have the correct results, as the calculator as-
Healthcare Foundation . sumes savings, i.e. decrease in utilization.
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The online ROI calculator asks users to enter data Once users answer the ROI Calculator’s 5 questions,
in 5 areas: the tool provides 4 reports:

1. Patient Enrollment: Users specify the size of 1. A Cost Summary gives users a quick overview
patient enrollment in the RPM program in year of the RPM program’s total cost by year and
1 and project what enrollment will be in year 5. total cost per patient per year.

2. Technology: Users estimate their investments 2. A Savings Summary charts the potential cost
in HIT. These estimates include 1-time invest- savings to the stakeholders identified in ques-
ments in medical devices and infrastructure; if tion 5.
applicable, an amortization period for purchas-
es/expenditures can be specified. The tool also 3. An ROI Evaluation compares the RPM pro-
asks for recurring costs like hardware rental, gram’s financial gains to its financial costs.
data costs and server hosting. The tool provides a score indicating the extent
to which the RPM intervention will generate
3. Staffing: Users enter the RPM program’s enough savings to cover the cost of the pro-
staffing requirements. This includes fixed man- gram.
agement costs, as well as clinical and support
staff costs that will change with the number of 4. A Sensitivity Analysis allows users to see how
patients enrolled. the ROI at year 5 would change if patient en-
rollment and costs changed.
4. Other Costs: Users can enter other RPM-
related costs, including costs for services, Please see the ROI Calculator tool at: http://www.
subscriptions, travel, administration, patient telemedroi.com/#home
materials and external monitoring services.
5. Outcomes: The final step helps users estimate
their potential savings from the RPM program.

Telehealth and Remote Patient Monitoring for Long-Term and Post-Acute Care:
A Primer and Provider Selection Guide 2013