Broadening the Focus: Actuaries Respond to the Limitations of Financial ROI

In this issue brief—the third in our “Broadening the Focus: Evaluating Health Care Programs” series—the Health Equity Committee explores the actuarial perspective on financial ROI by examining both its benefits and its drawbacks. It also summarizes actuary responses to limitations on financial ROI identified in earlier briefs. Key concerns include financial ROI’s narrow focus, inconsistent application, misalignment with clinical health care goals, short-term bias, and the “wrong pocket” problem.

Other briefs in the “Broadening the Focus” series include Evaluating Health Care Programs and Beyond Financial Return on Investment.