No matter what industry, each time a purchase is made, everyone always looks at what they are getting in return. How is this going to help me? What’s my return on investment?
Many of us know this phrase from the very popular show Shark Tank when Mr. Wonderful (Kevin O’Leary) asks, “What am I getting for my investment?” The same is true in the Health Care field because more often than not, ROI is very often a good combination of both “hard” and “soft” savings.
The “hard” cost is easy to define; what am I spending now versus what I will be spending on a different product, solution, or system? Or how is this solution going to allow be to save money in the long run? “Soft” savings is a bit more complex. It’s the time/labor saved by employees in completing a task taking 10 minutes versus 35 minutes, as well as, looking at the cost avoidance, by implementing ‘x’ you won’t have to purchase ‘y’ and ‘z’.
Everyone has heard the old adage, time is money, and that can’t be any truer when healthcare facilities know down to the dollar how much a vacant room costs and how quickly their staff can get a patient in and out of a room so it can be filled with another. Identity Management and Security Software play key roles in optimizing patient turn over and increasing both “soft” and “hard” savings. They can help to reduce costs by automating a process, eliminating the need for a full time employee for a manual process. They can also though help with “soft” savings such as saving valuable time which is needed to tend to patient needs to overall improve patient care.
Most health executives can justify some of their expenses on the fact that in dollars alone it’s currently cheaper than their current situation while others justify it based on their system admins wasting time opening, deleting and managing accounts. Both of these ‘hard’ and ‘soft’ costs are important.
When making a decision to purchase and thinking, how is this going to help me? What’s my return on investment? Remember the bigger picture, the soft savings.