New Web-based ROI Tool Demonstrates Return on Investment of Remote Patient Monitoring Programs


The Center for Connected Health (CCH) and the Center for Technology and Aging (CTA) have collaborated on the development of a tool for analyzing the Return on Investment (ROI) for remote patient monitoring technologies, enabling healthcare providers to evaluate the financial benefit of these technologies for patients with chronic heart disease. Remote patient monitoring (RPM) provides an increasingly important means of delivering health care in the U.S., improving care delivery, access to care, and quality of life, while reducing health care costs. Providers and payers interested in developing RPM programs generally need evidence, particularly financial evidence, of the effectiveness of a RPM program prior to approving its implementation or expansion. The ROI Tool helps health care providers determine the current ROI of an established RPM program as well as projecting ROI for future years.

Developed with support from the California HealthCare Foundation, this web-based ROI Tool helps to build the economic case that healthcare organizations need in order to take RPM programs to scale. “Remote patient monitoring increasingly offers providers new options for improving the care of America’s aging population, particularly those with a chronic disease,” said David Lindeman, PhD, Director of the Center for Technology and Aging.

“This new tool not only assists program managers to evaluate financial ROI, but it also identifies potential program efficiencies, making the ROI Tool effective for both evaluation and decision-making,” added Kamal Jethwani, MD, MPH, Corporate Manager of Research and Innovation for the Center for Connected Health. "Our thanks go to the California HealthCare Foundation and participating provider organizations for their support in this important effort."

The ROI Tool was developed and tested with a number of health care organizations participating in the CTA Diffusion Grants Program. HealthCare Partners (HCP), a large physician group practice based in Southern California, used the ROI Tool to quantify the value of its remote patient monitoring program for chronic obstructive pulmonary disease (COPD). Using the ROI tool, HCP’s interactive voice response program had a positive ROI of 1.3 to 1 after one year, and is projected to increase dramatically to 18.9 to 1 by year five.

"The importance of accurate, compelling, and relevant health services research cannot be overstated in an evolving care environment. To help meet CMS's Triple Aims of better health, better care, and reduced costs, the ROI Tool allows clinicians, policy makers, and health care administrators to accurately examine the costs involved to implement and expand a RPM program in a variety of care settings," said Dr. Jeremy Rich, Director of the HealthCare Partners Institute for Applied Research and Education.

Results from using the ROI Tool further support the use of RPM as an effective means of lowering avoidable hospitalization rates. The ROI of RPM tool can be accessed through the website (, or the CTA ADOPT Toolkit, which can be used by organizations seeking to improve patient care and health care utilization for chronic care management.

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