Some funding is based on the generation of new revenue, such as a loan that a bank may give to a grocery store in order to help that grocer begin a business that generates revenue. However, with charity efforts that serve those in need, charity investment is often provided in the hope to avoid expensive and less efficient costs. In other words, ROCI funding is an agreement to invest into a charity that will save avoidable expensive costs on the part of the funders. As an example, ROCI funding may solicit $300,000 in seed funding and $100,000 in ongoing funding per year in order to avoid $500,000 annually per hospital in the local healthcare economy’s three hospitals. The cost is the startup and ongoing staffing of a charity pharmacy. The return is that 1,000 patients each per hospital will be served with consistent access to medication. The investment goes into opening the pharmacy, with the benefit provided by the community charity pharmacy back to the hospital.
An ROCI funding relationship asks the following questions…
- What is the cost of the present system?
- What is the cost of the future system?
- What is the delta of those two financial realities?
- Who pays that cost?
- Who will receive the benefit?
- Is there capital enough to invest into the new system?
Some partner’s pain points your community charity pharmacy could solve for them, and the benefits that the partner would experience include.
|Potential ROCI Partner||Current Cost (Pain Point)||Potential Return||Investment Type|
|Hospitals||Avoidable emergency department and inpatient care||Savings in IP and ED care due to consistent access to primary care medication through a charity pharmacy||Seed and operating dollars to start and maintain the community charity pharmacy|
|Patients||Lowered health status and quality of life Reduced employability Lost work time Presenteeism||Supporting the community charity pharmacy through donations and service fees||Fees, donations, and service charges|
|Doctors||Lost time and personal frustration of prescribing meds that a patient cannot afford||An easy, simple answer for patients to get medications, as well as a prescribing formulary for the uninsured||Seed and operating dollars to start and maintain the community charity pharmacy|
|Employers||Lowered health status and quality of life for workers Diminished workforce Reduced employability Lost work time Presenteeism||An easy, simple way for workforce to experience improve health outcomes||Seed and operating dollars to start and maintain the community charity pharmacy|
|County, State, and Federal Government||Reduced tax income on earnings Lowered quality of life and satisfaction of the population||A low-cost mechanism to improve the health of the low income, and increase the productivity of the workforce, including increased taxable income||Seed and operating dollars to start and maintain the community charity pharmacy|
|Local Healthcare Foundations||Frustration in achieving a mission of improved health outcomes among the chronically ill||Measurable impact on health improvement among the uninsured||Seed and operating dollars to start and maintain the community charity pharmacy|