Here are 2 Key Metrics to Demonstrate ROI in Healthcare

Want to prove your healthcare tech’s ROI? Here’s how to speak the language of your customers’ business models. Understanding your target market’s business model is crucial when showcasing your technology’s worth. Whether they operate on a fee-for-service or value-based reimbursement, your solution needs to align with their financial flow. Here are 2 key metrics to demonstrate ROI in healthcare. 

Here’s a breakdown:

For fee-for-service models:

  • Show how your tech saves time and increases billable hours.
  • Position your solution as a path to enhanced efficiency and profitability.


For value-based reimbursement models:

  • Demonstrate how your tech can optimize utilization and care delivery.
  • Illustrate the potential for handling more patients without sacrificing quality.

Remember, it’s all about cost-cutting or revenue generation. Your tech must clearly contribute to one of these bottom lines to be seen as a viable investment. Whether it’s streamlining administrative tasks or enabling more patient appointments, it’s your job to connect the dots between your technology and the metrics that matter to your customers.



Understanding ROI in Healthcare Technology: Key Metrics to Guide Your Investment Decisions

In the rapidly evolving landscape of healthcare, technology-based solutions are becoming increasingly essential. Yet, the question persists: how do we measure their value effectively? Today, we’ll explore the key metrics that illuminate the path to understanding and maximizing ROI in healthcare technology. These are 2 key metrics to demonstrate ROI in healthcare.


Deciphering the Business Model Impact on ROI

First and foremost, it’s crucial to acknowledge that not all healthcare organizations operate under the same financial constructs. As we seek to measure ROI, the starting point is to understand the business model of the target market. Some institutions might operate on a fee-for-service basis, where revenue is tied directly to services rendered and codes billed. Others might be entrenched in a value-based reimbursement system, which incentivizes cost savings and quality outcomes.

The same technological solution can be a game-changer in both scenarios, but how you frame its benefits depends on this underlying business model. A clear grasp of this landscape allows you to tailor your value proposition precisely and convincingly.


Efficiency and Time Savings: The Universally Valued Currency

Irrespective of the reimbursement model, efficiency is the universally sought-after benefit in healthcare. If your technology can save time, then you’ve struck gold. Under a fee-for-service model, this equates to more billable time and, consequently, increased revenue. In the value-based care context, efficiency enables providers to manage more patients effectively, thus maximizing the utilization of fixed payments.

When presenting technology solutions to potential buyers, focus on how your offering can streamline workflows, reduce administrative burden, or expedite patient care. These are tangible benefits that resonate with healthcare practitioners who are constantly under pressure to optimize their time and resources.


Cost Reduction vs. Revenue Generation: The Dual Pillars of ROI

Ultimately, the ROI of healthcare technology hinges on two pillars: cost reduction and revenue generation. To prove your solution’s value, you must demonstrate its impact on one or both of these fronts. Cost-cutting measures could include automating manual processes, reducing the need for repeat tests or procedures, or minimizing waste. On the flip side, revenue generation could be achieved by enabling providers to see more patients, expanding services, or improving the billing process.

Identifying the key performance indicators (KPIs) that align with these outcomes is imperative. Whether it’s the total billable hours, patient throughput, or cost savings from reduced errors, the metrics you choose to track should directly correlate with the financial gains or savings your technology delivers.



Measuring ROI in healthcare technology is not a one-size-fits-all endeavor. It requires a nuanced understanding of the target market’s business model and a focus on the key metrics that resonate with that model. Whether through cost-cutting or enhancing revenue, the success of a technology solution ultimately lies in its demonstrable impact on a healthcare provider’s bottom line. By articulating this impact through relevant KPIs, technology vendors can effectively communicate value and foster confident investment decisions. Focus on 2 key metrics to demonstrate ROI in healthcare.


For more content like this, check out our Insights Page and check out The Better Outcomes Show. Or if you want to humanize healthcare through your business or organization, learn how Rehab U Practice Solutions can help here! You can also schedule a call with Rafi to discuss your company’s positioning strategy and brainstorm a business development plan here. Check out Rafi’s latest book, Better Outcomes: A Guide to Humanizing Healthcare, on Amazon!

Rafael E. Salazar II, MHS, OTR/L (Rafi) is the Principal Owner of Rehab U Practice Solutions and the host of The Better Outcomes Show and the author of Better Outcomes: A Guide to Humanizing Healthcare. His career trajectory includes 12+ years of experience in healthcare management, clinical operations, programmatic development, marketing & business development. He even spent some time as an Assistant Professor in a Graduate Program of Occupational Therapy and has served on numerous boards and regulatory committees. He has worked on projects ranging from patient engagement initiatives to marketing communication campaigns to a multi million dollar project assisting the State of Georgia's Department of Behavioral Health and Developmental Disabilities transition individuals out of state institutions to community residences. His work on Telehealth has been discussed in Forbes.

Today, Rafi helps innovative healthcare companies like technology startups, platforms, SaaS companies & innovative healthcare organizations develop effective positioning strategy and business development plans through his consulting work. He also leverages his experience as a professor and academic to speak and train on the topics around humanizing the healthcare experience & healthcare innovation. In addition, Rafi also owns and operates ProActive Rehabilitation & Wellness, a multidisciplinary outpatient clinic treating patients with musculoskeletal pain.

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