American Business Systems on What is a Good ROI In Healthcare
American Business Systems is an established medical billing system company with cutting-edge billing solutions. With their ABS business package, healthcare facility owners can learn what it takes to build a thriving practice, improve efficiency, and boost their ROI within a year.
American Business Systems also understands that building a practice from scratch is no easy task. With their services, they answer common questions like "what is a good ROI in healthcare?".
What is ROI?
Return-on-investment (ROI) gauges a company's profitability by measuring how much it makes for every dollar the owner invests. For example, if a convenience store purchases (or invests) $100 of candy bars and receives a profit (return) of $150, its ROI on that front would be 1.5.
ROI isn't as easy to gauge for healthcare practices since their services are less material than in the above example. However, ROI factors into several areas that apply to the medical field. For example, a practice that invests in new equipment or billing software might improve its efficiency, therefore treating more patients or attracting new ones and achieving a positive ROI as a result.
Ideal ROI For Healthcare Facilities
Most business professionals believe that a 7% ROI is ideal for established businesses. However, many startups on smaller investment budgets aim for an ROI between 15% and 30%.
How Long do Healthcare Businesses Need to Reach a Good ROI?
It takes most healthcare businesses two to three years to reach profitability. However, that timeline fluctuates depending on the business' startup costs, the size of its employee base, and where it invests money.
The more people a business hires or the more products it acquires, the longer it will take to turn a profit because of high upfront costs paired with traditional startup growing pains. However, businesses can offset those issues by investing in the right ways.
Do Healthcare Practices Often Reach Their Target ROI?
In 2019, only 59% of privately owned healthcare practices could expect to grow over the years. However, in 2021, 75% reported that they anticipate meeting their target ROI, partially because of the time and money-saving resources now available to healthcare practices.
How Can Practices Reach Their Target ROI
So, again, what is a good ROI in healthcare?
While experts can put up specific numbers, the reality is that the higher a business' ROI, the better. Outdated software and low efficiency can bring that number down, leaving a business struggling.
However, American Business Systems combats that inefficiency with their state-of-the-art services, helping businesses make an extra $36,400 in their first year to boost their ROI. Our business package includes marketing tools, live one-on-one training, and lifetime support whenever needed. It provides everything a healthcare business needs to thrive.
Contact American Business Systems at (866) 565-8413 to learn more.
