Business Impact Calculator

Calculate the ROI of your readmission reduction program

Population & Baseline

Total Patient Population

Current 30-Day Readmission Rate (%)

National average: 15-17% for Medicare

Average Cost Per Readmission ($)

Industry range: $10,000 - $25,000

Intervention Strategy

Target Reduction in Readmissions (%)

Conservative (10-15%)Aggressive (25-40%)

% of Patients Receiving Intervention

Target high-risk patients (typically top 10-20%)

Cost Per Patient Intervention ($)

• Phone call: $50-$200

• Transitional care: $200-$400

• Home health visit: $300-$600

Financial Impact Summary

Net Annual Savings

$4.1M

Cost Avoidance

$4.5M

Program Cost

$375K

Return on Investment (ROI)

1100%

Every $1 invested returns $12.00

Readmission Metrics

Current Readmissions

1,500

Rate

15.0%

Prevent 300 readmissions

Target Readmissions

1,200

New Rate

12.0%

Break-Even Analysis

Patients in Program:1,500

Readmissions to Prevent:25

Success Rate Needed:1.7%

Break-Even Point: Need to prevent only 25 readmissions (8% of target) to cover program costs.

💡Key Insights

•ROI is excellent - every dollar invested generates $11.00 in savings.
•Targeting the top 15% highest-risk patients (instead of all 10,000) maximizes ROI while keeping costs manageable.
•Even a modest 20% reduction in readmissions generates $4.5Min cost avoidance, demonstrating significant financial impact.