Return on Investment
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Return on Investment
Name
Institutional Affiliation
QUESTION 1
Experts argue that its essentials to establish ROI parameters before embarking on new public health projects especially those involve acquisition of new information technologies. This means that before embarking on the projects, organizations should calculate the incremental gain from such actions basing their parameters on the long term gain. Before undertaking healthcare information systems and related projects, top decision makers should evaluate the investment potential by comparing the timing and magnitude of the benefits to the investment costs. On this reason, an effective determination of ROI of information systems on healthcare helps to provide an excellent decision in consideration of alternative designs for their performance, stakeholder expectations and costs. A recent study by The Standish Group International Inc., has found that the U.S had wasted over $55 billion, which was an increase in unnecessary overspending for IT related projects in healthcare. The determination of ROI on healthcare systems helps to avoid unnecessary overspending on IT infrastructure.
Research has proven that unlike basic equipment for healthcare that require routine improvements, in terms of ROI, clinical decision support applications are difficult to analyze. For this reason, establishing effective parameters such as quantifying the real value of such systems is essential. Quantifying the value of healthcare information systems helps decision makers to understand interrelated factors such as clinical practices, patient care, organizational structure and medical outcome. On this token, several healthcare organizations in the United States have employed varied approaches to gain deep insights on their knowledge of business processes before investing in healthcare systems. This has helped the organizations to avoid costly and ineffective processes (Blachowicz, 2008).
The
Return on Investment
Name
Institutional Affiliation
QUESTION 1
Experts argue that its essentials to establish ROI parameters before embarking on new public health projects especially those involve acquisition of new information technologies. This means that before embarking on the projects, organizations should calculate the incremental gain from such actions basing their parameters on the long term gain. Before undertaking healthcare information systems and related projects, top decision makers should evaluate the investment potential by comparing the timing and magnitude of the benefits to the investment costs. On this reason, an effective determination of ROI of information systems on healthcare helps to provide an excellent decision in consideration of alternative designs for their performance, stakeholder expectations and costs. A recent study by The Standish Group International Inc., has found that the U.S had wasted over $55 billion, which was an increase in unnecessary overspending for IT related projects in healthcare. The determination of ROI on healthcare systems helps to avoid unnecessary overspending on IT infrastructure.
Research has proven that unlike basic equipment for healthcare that require routine improvements, in terms of ROI, clinical decision support applications are difficult to analyze. For this reason, establishing effective parameters such as quantifying the real value of such systems is essential. Quantifying the value of healthcare information systems helps decision makers to understand interrelated factors such as clinical practices, patient care, organizational structure and medical outcome. On this token, several healthcare organizations in the United States have employed varied approaches to gain deep insights on their knowledge of business processes before investing in healthcare systems. This has helped the organizations to avoid costly and ineffective processes (Blachowicz, 2008).
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