Scenario 1: Your members make four or more visits to the ED per quarter. You want to try to lower that to three visits per quarter. But how? What kind of changes in staff will you need? What utilization changes will you need to make?
Scenario 2: Your organization wants to expand their interventions. At what point will you see a positive ROI? How many members can you then serve?
Thanks to a tool from the Center for Health Care Strategies, Inc. (CHCS), wonder no more. CHCS has developed an ROI Forecasting Calculator, a Web-based tool to help Medicaid and health plans predict cost-savings potential of efforts to improve quality.
A recent CHCS webinar made possible by the Commonwealth Fund and the Robert Wood Johnson Foundation walked participants through the tool and also offered experience on how the participants in the ROI Purchasing Institute used the tool to plan for and support specific state initiatives.
According to CHCS 's Program Officer Allison Hamblin, the tool "puts a price tag on potential quality savings" as users enter assumptionsto estimate potential savings. Assumptions needed include factors regarding intervention, target population, utilization, program costs and discount rates.