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ROI in health care

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Why is it necessary to calculate ROI before investing in a new product or service? What unique challenges would a health care organization face when attempting to calculate a true ROI?

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2.Why is it necessary to calculate ROI before investing in a new product or service? What unique challenges would a health care organization face when attempting to calculate a true ROI?

The Return on Investment or ROI is a calculation of the ratio of money gained or lost to the money invested. Mathematically the equation appears as
ROI=(Final Investment -Initial Investment)/Initial Investment for a single period investment. If it is a compounded investment (over a period of time) then the equation is:
ROI (log) = ln (investment final/investment initial)
If the ...

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