Measuring ROI of Continuous Care Program
Non-Communicable Diseases, or NCDs as they are commonly known, are a silent killer plaguing not only the developing world but also the developed nations. Recent case of a young 21 year medico collapsing at the dinner table due to cardiac-arrest sends a chill down the spine. One of the main causes of this is the sedentary lifestyle our current generation is accustomed to and the incessant use, rather abuse, of electronic devices.
According to AHRQ, NCDs are no longer limited to older, wealthier populations; they have now become the dominant cause of death in young and the low income groups too. Since lifestyle factors play a significant role in most of these diseases, they need to be addressed during adolescence when there is a better chance for preventing the unhealthy habits. While primary prevention does not completely eliminate the need for treating the disease, it does offer a great opportunity to lower the burden on individuals, families and healthcare systems.
The Pivotal Role of Continuous Care Program
Continuous Care Program is a patient-centric approach to assist patients and healthcare systems to effectively manage their medical condition. Organizations that provide continuous care employ health coaches who visit members to identify risks by recording their vitals, and suggest personalized healthcare plans. The healthcare plans include diet, lifestyle, physical exercise and medications. The goal for improved outcomes i.e., reduced medical expenses, better health metrics and reduced premiums, is early detection and right support.
The Big Challenge: Determining ROI for Continuous Care
The two essential activities of a well-functioning continuous care health system are, preventing disease and helping patients maximize health and function over the life span. There are many organizations which are in continuous care activities. However, the big challenge for them is the determination of the value and ROI that they are delivering.
Measuring the ROI
Our experience in the past three years managing NCDs with continuous care methodology has helped us to understand the underlying mechanics of the operation and identify the key metrics that we need to measure. The following are some of the measures that we track to calculate the ROI:
- Members (M): Total number of active members in the program.
- Saving (S): Average cost saving per member per month in terms of dollar value.
- Duration (D): Average number of months the member is with the program.
- Office (O): Number of support staff, health coaches and providers who are part of this continuous care program.
- Costs(C ): Cost of running the operation per month, in terms of staff salaries, office expenses and other overheads.
ROI = M x D x S / O x C
For example,
ROI = (9000 x 100 x 2) / (20 x 40000) = 2.25
Leverage Blockchain for Improved ROI
With use of blockchain based scale-able application, it is possible to improve the ROI. A technology based approach will increase the reach and thereby significantly increases registered active members (M) with a slight increased need for office staff number (O). There is an increase in overall costs( C). However, our experience has been that with face-to-face interactions, the duration (D) of member being in the program has increased to 3 months. A trusted technology based application helps in increasing saving (S) per person as we are able to get real-time data. Using AI based personalization algorithms help in proactive and intelligent care management. The personalized care is based on an holistic approach combining member healthcare as well as lifestyle wellness parameters. This care will help in identifying indicators of risk early, thereby preventing unnecessary hospitalizations.
Reworking, the above example, with the new numbers:
ROI = (21000 x 120 x 3) / (25 x 45000) = 6.72
Capturing the right metrics is key for measuring the ROI. Using blockchain based applications we can easily scale up the activities and at the same time increase the ROI.
An adaptable, scale-able, and blockchain based platform empowers members and healthcare coaches to cater to high-risk NCD patients, sustaining meaningful engagement, and to manage the silent but fatal diseases with a very effective personalized care. We have also seen that the overall ROI of such operations can be improved by use of this technology platform which is not just beneficial to all stakeholders but also helps in building a new healthcare ecosystem.
NanoHealth has a proven model on treating NCDs via continuous care programs. We are now using blockchain to scale our solution globally and building the NanoHealthCare Token Ecosystem. Join our telegram community to get the latest updates on the NHCT ICO.
References
- AHRQ Reports, US Dept. of Health and Human Services.
