Return On Effort: Can This Formula Improve Your Life?

Posted on May 28, 2016
Time to read: 4 minutes

In the financial world, the DuPont method is used to measure a company’s return on equity (ROE), which is defined as the return on a shareholder’s invested funds. ROE is considered to be one of the best measures when it comes to assessing financial performance.

As clinicians and managers, we operate within resource constraints – and, as a result, anyone working in the public or private system should have a basic understanding of value generation and the economic sustainability of a project.

Understanding economics and the drivers of value generation for patients is useful, because it helps us with optimal allocation of resources for patient care.

References

Economics in medicine

Smith, R. (2003). What doctors and managers can learn from each other. British Medical Journal, 326(7390), 610.

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