Hospital CIO: Return-On-Investment of Apple iPad is mere 9 days

“I attended a healthcare event last year that needs to remain nameless,” Dan Munro reports for Forbes.

“Mixed among the various panels that day was one with 5 CIO’s from various healthcare facilities – mostly hospitals. It was the last panel of the day and the topic was loosely around their collective view, vision and use of technology at their own facility,” Munro reports. “As is often the case, the reference to Return-On-Investment (ROI) came up at which point one of the CIO’s recounted this brief story from his own personal experience.”

Munro reports, “Turns out the Board of Directors at his hospital was considering a sizeable financial commitment to tablets – and specifically iPad’s. They asked the CFO for an ROI analysis – and the CFO turned the task over to this CIO. Using time-motion analysis around clinical workflow tied roughly to various labor costs – our CIO arrived at an interesting dilemma. In fairness, the study was far from scientific, but the ROI was so low – 9 days – that it ran the very real risk of being unbelievable to the Board. Still, that was what the data showed so that is what the CIO presented. The risk was limited by the simple fact that even if he was wrong – by even a huge margin of 100%, 200% or 300% or more – it still made for a relatively easy and compelling business decision.”

“The longer story is that the hospital continued with their roll-out of iPad’s hospital-wide,” Munro reports. “They have since successfully implemented their initial installation, and are embracing other mobile solutions rapidly. The technology lesson, however, is really much broader – and repeats in so many different ways.”

Much more in the full article here.

Related articles:
Apple iPad, iPhone are doctor’s top choices by huge margin – June 1, 2013
Hospital uses iPads to help moms stay in contact with newborns – April 9, 2013


  1. Will Apple have the PR vision to evangelize the reality of it’s iOS devices and other products or will they continue to sit on their hands and “Be Patient” letting Samsung grab what is Apple’s again and again? Timmy and the Apple board still like to “Be Patient” and miss opportunities as the fly by almost hitting them in the face over and over again.

    Tim Cook, at least do some great new Apple ad campaigns. Apple can at least step up and advertise the great products and services while we are all told to “Be Patient”!

      1. Pathetic. Maybe Apple just doesn’t have enough staff to handle all that stuff. It just seems like such a waste for Apple not to push its products to be useful in industry to advance the way things are done. Maybe being patient is a good thing, but I just look at it as letting companies like Samsung jump in and grabbing everything. As a shareholder, I find that scenario rather unsettling. I figure, how’s it gonna hurt Apple to do a little more advertising. Maybe it will hurt if Apple isn’t really ready to take on those tasks and do a good job. I still honestly believe Apple knows what it is doing, so my fears are probably unwarranted.

    1. It’s the apps – and they are on Apple! Apple is IN and Android is OUT in the hospital setting. Apple is DESTROYING Android in business. There are also patient confidentiality laws that make an insecure advertising supported, full of holes OS not suitable for hospital use – never mind the OS fragmentation that makes Android impractical for “fleet” deployment as replacement devices do not have the same OS version as the original devices – not a problem on iOS, which is upgradeable.

      1. Fragmentation will keep medical app developers developing more for iPad. Android is it’s own worst enemy when it comes to using in business and why would you want to develop anyway for such an inferior platform and ecosystem that has 99% of all tablet malware? Way more trouble and zero payoff.

        My daughter bought a Kindle Fire and now longs for a real iPad, stealing her Mother’s whenever possible (she ain’t touchin’ mine) which starts real fights. Reason? Not enough stuff that she wants available on it. I do think Android will be even LESS attractive with time as Apple builds in more services and fixes things like Maps to be more world class. God knows what people are doing with Android craplets since like 80-90% mobile web usage is Apple.

  2. The one thing I couldn’t help but think is that with the outrageous price of health care, ANYTHING they buy probably gets paid for within a week.

    Not knocking iPads one bit, just sayin’ . . . .

    1. Clipboard + pens + Printed Forms = $50/month
      Printer = $1000/month divided by each staff member.
      Data entry clerks to digitize and enter forms (getting all the checkboxes in the right place) into hospital computer = $20/hr.
      1 wrongful death lawsuit because of a clerical transcription or handwriting mis-recognition error = priceless.

      Let’s assume that the CIO is being conservative in ROI.

    2. That would be true except their costs are high for administration. I think their admin costs are equal to their care giver costs…. Health care and college admin costs are just ludicrous

      1. And the tissue-thin excuse offered for such money grabs is that high salaries are essential to attract the best and most effective administrators.

        Guess they’re still trying to find them.

        Steve Jobs worked for $1 annual salary. “I have plenty of money,” he said. Other execs who work for food include (thanks to BI Oz):

        Oracle’s Larry Ellison
        Facebook’s Mark Zuckerberg
        Google’s Larry Page and Sergey Brin
        Oracle’s Larry Ellison
        Tesla’s Elon Musk
        Zynga’s Mark Pincus
        H-P’s Meg Whitman

        Outside of technology, other industries—but not Health Plans or Universities—have dollar stores too:

        Capital One’s Richard Fairbank
        Urban Outfitters’s Richard Hayne
        Fossil’s Kosta Kartsotis
        Kinder Morgan’s Richard Kinder
        Duke Energy’s James Rogers

        Talk about rarae aves

  3. This story pretty much flies in the face of Bill Gates saying how useless iPads are compared to Windows tablets or how iPads are overpriced for their use in business. Health care is serious business (saving lives) and if the iPad is useful to them, then I’m sure it can be considered a useful business tool.

  4. While the iPad will really help the medical profession do their job, the reason the ROI is 9 days is because health care costs are so freakin’ high that it only takes 9 minutes of savings to equal the cost of an iPad.

    But I’m sure Obamacare will fix that.

    1. I know you’re being sarcastic, but for those low-information voters who don’t:

      Obamacare is the greatest gift to the Republican party in our lifetime.

      IRS: Cheapest Obamacare Plan Will Be $20,000 Per Family

      In a final regulation issued Wednesday, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year.

      Under Obamacare, Americans will be required to buy health insurance or pay a penalty to the IRS.

      The IRS’s assumption that the cheapest plan for a family will cost $20,000 per year is found in examples the IRS gives to help people understand how to calculate the penalty they will need to pay the government if they do not buy a mandated health plan.

      More: IRS: Cheapest Obamacare Plan Will Be $20,000 Per Family

      1. for everybody reading, please note, that the IRS predicts PENALTIES of some number for not getting insurance, NOT cost of insurance for a family using proper channels. If you don’t buy car insurance and kill someone, you will be far worse off than $20K, and if you did not have health insurance and get sick, you could be far worse off than the $20K mentioned in the IRS report

        Bad logic leads to fanatic beliefs like this pariah

        Please do not be mislead by lack of cognitive thinking or logical analysis of this completely misguided soul

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