Savings Calculations

The system described in this section is a turn-key ready installation (including staff training and technical support) created for a 400 bed facility. The total price of $2.83 million includes hard-wiring for all rooms, 100 portable patient monitors which can be moved from room to room, 10 Solowatch servers, and six Solowatch workstations for monitoring and analysis from different points in the hospital, and all other incidental and installation costs.

Solowatch checks each patient several times per minute and logs data four times per hour. Using current techniques, this would require a rather impractical 1:1 nurse-to-patient ratio. Since such a comparison would obviously be unfair, our savings estimate is based on the assumptions listed below.

Assumptions:

  • 70 patients visited twice per shift.
  • 6 1/2 hours (390 minutes) of are spent working (allows one hour for lunch, breaks, additional duties, etc.).
  • Staff spend 10 minutes on each patient visit (includes travel between rooms, testing, logging data, filing charts, interruptions, etc.).
  • Nursing labor costs $225 per person-shift (approximately twice their stated salary; includes taxes, social security, workmen's comp, health insurance, liability, training, etc.).

Staff Time Cost:

  • 2 visits 10 minutes per visit 100 patients = 2,000 minutes per shift.
  • 2,000 minutes per shift 390 minutes per person = 5.12 people per shift.
  • 5 people per shift 3 shifts 30 days per month $225 per person per shift = $101,250 per month.

Savings:

  • Savings over ten years will be {$101,250 per month 12 months per year 10 years} = $12.15 million.
  • Investment recovery will be {$2.83 million cost $1,215,000 per year} 12 months per year = 27.9 months.
  • 6-year 12% financing for the $2.83 million project cost yields monthly payments of $55,311.
  • Monthly cash flow will be {$101,250 monthly savings} - $55,311= $45,939.

Remote Locations:

  • Remote Solowatch stations tie patients into the main system via phone lines.
  • Cost for each remote station is approximately $25,000.
  • Monthly payments for 6-year 12% financing for a remote station are $507.
  • Creates profits of $3,500 a month if leased to outpatients at $1000 a week .
  • Costs much less than a supervised hospital stay; great for managed healthcare programs.

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By J. Michael Crawford.
Copyright (c) 2002 Solo Systems, Inc. All rights reserved.
Revised: March 20, 2002.