DHI Favorite: Understanding Digital Health's ROI with Charm Economics Founder Adam Block, PhD

Decoding Healthcare Innovation

In this episode, Carrie, Rebecca, and Adam discuss:

• Why digital health startups need to calculate ROI
• What types of organizations to consider targeting as customers
• What range of ROI Adam sees digital health companies produce
• How to supercharge success by creating value pathways

Key Takeaways:

• When you’re pitching to a CFO, they’re going to be looking for the answer to two questions: 1.) Are you going to bring my organization more revenue? 2.) Are you going to reduce the overall cost structure across my organization? You need to have a clear cut answer. CFO’s tend to be calculation-oriented people.
• There are five types of organizations you can target as customers:
  • Health plans
  • ACOs (Accountable Care Organizations)
  • Hospitals
  • Employer groups
  • Self-insured employers
• The ranges of ROI for digital health companies can go as low as 2x to as high as 20x or 30x, depending on the estimates that are used.
• Create value pathways. Think about how your digital health company is going to lead to potential overall additional revenue or additional savings for your clients. Write it out and add it into your demo.

“Pricing is a bit of an art but I’m a believer that ROI should be driving what your pricing is.” - Adam Block

Connect with Adam Block:

Website: https://www.charmeconomics.com/

LinkedIn: https://www.linkedin.com/in/adameblock/

Learn more from Carrie and Rebecca:

Healthcare Insights (a monthly deep dive into specific topics for innovators): https://nixongwiltlaw.com/healthcare-insights

Telehealth/Virtual Care Mgmt Update (a biweekly LinkedIn newsletter tracking legal and policy changes across the nation): https://www.linkedin.com/newsletters/telehealth-virtual-care-update-6901900767960068096/

Website: https://nixongwiltlaw.com/

Carrie on LinkedIn: https://www.linkedin.com/in/carrienixon/

Rebecca on LinkedIn: https://www.linkedin.com/in/rebeccagwilt/

NGL on LinkedIn: https://www.linkedin.com/company/nixon-gwilt-law/