National Association for Healthcare Quality® Proves a Financial Return to Investing in Quality

Real world results from top health systems demonstrate validated process to build workforce capabilities that drive measurable cost savings and improved healthcare outcomes

CHICAGO, June 3, 2025 /PRNewswire/ -- The National Association for Healthcare Quality^®(NAHQ) today released a groundbreaking new report that for the first time quantifies investing in the workforce to advance quality and safety produces improved healthcare outcomes and a financial return on investment (coined ROI-Q). This landmark research refutes the long-standing misconception that quality must come at the expense of reducing costs.

The report introduces a first-of-its-kind, validated process for achieving a tangible return on quality investments based on the quality and safety competencies in the twice-validated, industry standard Healthcare Quality Competency Framework. It provides a scalable methodology for healthcare organizations to enhance quality and safety initiatives while simultaneously realizing measurable cost savings and revenue growth.

"The healthcare industry stands at a critical juncture, facing unprecedented challenges including workforce shortages, escalating costs, an aging population and the urgent need for workforce reskilling - all amidst significant policy shifts and demands for greater efficiency," stated NAHQ CEO Stephanie Mercado, CAE, CPHQ. "This pivotal report unequivocally demonstrates the compelling return on investment in quality (ROI-Q). By adopting and scaling these proven strategies nationwide, we have the potential to unlock billions of dollars in cost savings and achieve transformative reductions in preventable harm for patients and their families."

Key results in the report derived from analysis of some of the nation's largest health systems include:

• 194% improvement in cost avoidance resulting in $6,530,400.00 of savings over two years (Kaiser Permanente Northern California)
• $15-20 million in annual gains from pay-for-performance incentive programs (Christus Health)
• Hospital acquired condition penalties decreased by 92% (Kaiser Permanente Northern California)
• 50% reduction in serious safety event rates (Christus Health)
• Improvement in CMS Quality Star Ratings, outpacing comparisons (Veterans Health Administration)

"While we have witnessed notable progress in quality and safety, significant opportunities for improvement remain. The current healthcare cost model is unsustainable, and one in four hospital admissions results in adverse events, and alarmingly, approximately one-fourth of those are preventable," added Mercado. "This report offers a concrete pathway to overcome these systemic barriers at scale and provides healthcare leaders with the tools to build profitable and effective quality and safety management systems."

The process consists of five key strategies that demonstrate how investing in the workforce drives both enhanced quality and improved financial performance:

• Strategy 1: Communicate the return on investment of quality and safety
• Strategy 2: Assess, train and certify teams with the industry standard
• Strategy 3: Activate quality as a business strategy and organize your system around it
• Strategy 4: Define every contributor's role in quality
• Strategy 5: Require annual quality and safety training for the entire workforce

"NAHQ identified a pervasive problem in the market and solved for it. This type of workforce innovation is unmatched," said David B. Nash, MD, MBA, Founding Dean Emeritus, Jefferson College of Population Health.

About NAHQ

The National Association for Healthcare Quality^® (NAHQ) is at the forefront of elevating the profession and advancing the discipline of quality & safety across the continuum of care. We set the industry standard through our expert-created, twice-validated Healthcare Quality Competency Framework™ and help individuals and organizations achieve it through educational programming, industry leading data-driven intelligence, and the only accredited certification in healthcare quality, Certified Professional in Healthcare Quality^® (CPHQ). NAHQ also serves as a welcoming membership community and a trusted partner to 150+ organizations helping build quality infrastructures, workforce planning and professional development programs and quality cultures. Learn more at NAHQ.org.  

Media Contact: Evelyn Warren  
Director, Public Relations and Communications / National Association for Healthcare Quality 
[email protected]

SOURCE National Association For Healthcare Quality