Case Study: Calculating a return on investment.

Case Study:Calculating a return on investment.

Case Study:  Advocate Health Care

Advocate Health Care is a multi-hospital system in the Chicago metropolitan area with both urban and suburban hospitals and several systemwide physician practices.  Advocate employs in excess of 25,000 people.  The system operates under a single domain,  Web planning, staffing and budgeting are centralized.

The Need

As spending on the Web increased, Advocate wanted to calculate a credible return on its online investment that went further than visitor and page view trends and showed a direct contribution to the organization's profit and loss. 

The Approach

Advocate had extensively researched the internal ROI of its call center.  The most direct method for examining the website's contribution was to focus on the physician appointments requested online and apply the same ROI research.  Imaginary conducted an extensive study of website visitor behavior including paths and funnels through to a valid appointment request.  This data was compared with the offline research to determine the incremental value of website appointment requests.

An Excerpt...

The following is an excerpt from the Predictive Model Study jointly presented at the Healthcare Internet Conference by Imaginary Landscape and Advocate Health Care:

Calculations were limited to those with a Web interaction that preceded a discharge within 12 months and included inpatient, outpatient, ED and medical group charges.

The Outcome

Using a dataset of 1,293 patients, contribution was determined to be an average of $918 per valid appointment set through the website.  Contribution was incremental to the website and calculated net of contractual discounts for 12 months following the initial online appointment request.  Systemwide the annual incremental contribution of Web-based appointment requests was calculated to be $550,800.

Results Summary

  • Online analysis showed that 0.2% of monthly visitors to a hospital website submit a valid appointment request
  • A predictive model emerged tying monthly visitors to ROI:  Monthly Visitors x 0.2% x $918 x 12 = ROI