Telehealth Service ROI Evaluator

Telehealth Service ROI Evaluator

Stop guessing your ROI. Most people forget to factor in overhead, patient retention, and the cost of technology. Calculating the return on investment for telehealth services isn’t as straightforward as it seems. It’s not just about the revenue generated from virtual visits. You need to consider different variables, including staffing costs and patient acquisition expenses. It’s a maze of numbers, and if you’re not careful, you’ll end up with a skewed perspective that could lead to poor strategic decisions.

How to Actually Use It

Getting the right numbers for this calculator isn’t as simple as you think. Start by looking at your gross revenue from telehealth services. This includes all the payments collected for virtual consultations. Don’t overlook your overhead costs. Factor in your software subscriptions, the salaries of staff involved in telehealth, and any additional marketing expenses. The data should come from your financial reports, billing systems, and accounting software. A good place to start is your monthly profit and loss statements. Make sure you also consider patient retention rates, as keeping existing patients is usually cheaper than acquiring new ones.

Variables Explained

• Gross Revenue: Total income from telehealth services before any expenses are deducted. This is where you need to pull numbers from your billing software.
• Overhead Costs: This encompasses everything from technology costs, salaries, to any additional expenditures that directly impact telehealth operations. Don’t skip this step; it’s often where people get it wrong.
• Patient Acquisition Cost: Calculate how much it costs to acquire a new patient through marketing and outreach. Look at your advertising expenses over a specific period and divide it by the number of new patients acquired.
• Retention Rate: Understanding how many patients return for services is crucial. Use your patient management system to find this number.

Case Study

For example, a client in Texas was struggling to justify their investment in telehealth. They had invested in a state-of-the-art platform and were seeing some revenue, but their ROI calculations were all over the place. After a deep dive into their financials, we discovered they were not accounting for the $2,000 monthly subscription fee for their software, nor the marketing costs that ran about $1,500 per month. Once we factored these in, their ROI was significantly lower than expected. They realized they needed to increase their patient retention efforts and streamline their processes, which ultimately led to better financial health.

The Math

Calculating ROI isn’t rocket science, but it does require diligence. The basic formula is:

ROI = (Net Profit / Total Investment) * 100

Where net profit is gross revenue minus all costs (overhead, patient acquisition, etc.). Plug in your numbers, and you’ll see the real picture. If you’re at a loss, it might be time to rethink your telehealth strategy.

💡 Industry Pro Tip

Here’s something only an expert knows: Always keep an eye on your competitors’ strategies. If they’re investing heavily in telehealth and you’re not, you might be missing out on significant market share. Check their patient engagement strategies and adapt your own for better results.

FAQ

• What if my overhead costs fluctuate? Keep a running average over the last few months to get a more accurate picture.
• How do I determine my patient acquisition cost? Divide your total marketing expenses by the number of new patients gained during the same period.
• Is there a standard ROI I should aim for? Generally, a positive ROI (above 0%) is good, but industry benchmarks can vary.
• What if I don’t have all the numbers? Use estimates based on historical data, but ensure you reassess as you gather real figures.