Return on Community Investment (ROCI) Funding

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 PartnerCurrent Cost (Pain Point)Potential ReturnInvestment Type
HospitalsAvoidable emergency department and inpatient careSavings in IP and ED care due to consistent access to primary care medication through a charity pharmacySeed and operating dollars to start and maintain the community charity pharmacy
PatientsLowered health status and quality of life Reduced employability Lost work time PresenteeismSupporting the community charity pharmacy through donations and service feesFees, donations, and service charges
DoctorsLost time and personal frustration of prescribing meds that a patient cannot affordAn easy, simple answer for patients to get medications, as well as a prescribing formulary for the uninsuredSeed and operating dollars to start and maintain the community charity pharmacy
EmployersLowered health status and quality of life for workers Diminished workforce Reduced employability Lost work time PresenteeismAn easy, simple way for workforce to experience improve health outcomesSeed and operating dollars to start and maintain the community charity pharmacy
County, State, and Federal GovernmentReduced tax income on earnings Lowered quality of life and satisfaction of the populationA low-cost mechanism to improve the health of the low income, and increase the productivity of the workforce, including increased taxable incomeSeed and operating dollars to start and maintain the community charity pharmacy
Local Healthcare FoundationsFrustration in achieving a mission of improved health outcomes among the chronically illMeasurable impact on health improvement among the uninsuredSeed and operating dollars to start and maintain the community charity pharmacy