Funder: Robert Wood Johnson Foundation

May 2007 | Technical Assistance Tool

The ROI Forecasting Calculator for Quality Initiatives is a web-based tool designed to help state Medicaid agencies, health plans, and other stakeholders assess and demonstrate the cost-savings potential of efforts to improve quality. The easy-to-use tool walks users through a step-by-step process to develop ROI forecasts for proposed quality initiatives. Users are asked to enter a variety of assumptions, including target population characteristics, program costs, and expected changes in health care utilization, to estimate potential savings. The ROI Calculator can be used to help determine where to make investments in quality and how to target proposed initiatives for maximum financial impact. By demonstrating the financial impacts of investments in quality beyond their upfront costs, the ROI Forecasting Calculator can also be used to create a financial case to policymakers for obtaining the resources to make those investments in the first place.

To use the ROI Forecasting Calculator visit