The Return On Investment Of Implementing A Continuous Monitoring System In General Medical-Surgical Units

Abstract

Objective: To evaluate the cost savings attributable to the implementation of a continuous monitoring system in a medical-surgical unit, and to determine the return on investment (ROI) associated with its implementation. Design: ROI analysis. Setting: A 316-bed community hospital. Patients: Medicine, surgery or trauma patients admitted or transferred to a 33-bed medical-surgical unit. Intervention: Each bed was equipped with a monitoring unit, with data collected and compared in a nine-month pre-implementation period to a nine-month post-implementation period. Measurements and main results: Two models were constructed: a base case model (A) in which we estimated the total cost savings of intervention effects, and a conservative model (B) in which we only included the direct variable cost component for the final day of length of stay and treatment of pressure ulcers. In the 5-year ROI model, the monitoring system saved between $3,268,000 (Conservative Model B) and $9,089,000 (Base Model A), given an 80% prospective reimbursement rate. A net benefit of between $2,687,000 ($658,000 annualized) and $8,508,000 ($2,085,000 annualized) was reported, with the hospital breaking even on the investment after 0.5 and 0.75 of a year, respectively. The average net benefit of implementing the system ranged from $224 per patient (Model B) to $710 per patient (Model A) per year. A multi-way sensitivity analyses was performed using the most and least favorable conditions for all variables. In the case of the most favorable conditions, the analysis yielded a net benefit of $3,823,000 (Model B) and $10,599,000 (Model A), and for the least favorable conditions, a net benefit of $715,000 (Model B) and $3,386,000 (Model A). The ROI for the sensitivity analysis ranged from 127.1% (25.4% annualized) Model B to 601.7% (120.3% annualized) Model A for the least favorable conditions, and from 627.5% (125.5% annualized) Model B to 1739.7% (347.9% annualized) Model A for the most favorable conditions. Conclusions: Implementation of this monitoring system was associated with a highly positive ROI. The magnitude and timing of these expected gains to the investment costs may justify the accelerated adoption of this system across remaining inpatient non-ICU wards of the community hospital.