Measuring Social Impact in Healthcare Partnerships With SROI

Published: 21 Jul 2025

Reading Time: 3 minutes

Healthcare partnerships are often measured by outputs: number of patients reached, trials launched, grants secured. But in an era of rising expectations and public scrutiny, stakeholders are asking a different question: What difference did it make?

Whether you’re a hospital working with a community health agency, a biopharma company investing in a rare disease alliance, or a public funder distributing innovation grants, it’s no longer enough to measure effort. You must measure impact, and specifically, social return on investment (SROI).

As Jed Emerson, a pioneer in impact investing, wrote: “It’s not just about doing good. It’s about doing good well—measurably, accountably, and sustainably.”¹

Designing partnerships for impact requires intentionality, shared metrics, and a framework for evaluating both health and equity outcomes. This is especially critical in rare disease and clinical innovation, where populations are small, stakes are high, and partnerships often serve as infrastructure.

The Limits of Traditional ROI

In traditional healthcare settings, return on investment is calculated using financial metrics: cost savings, reimbursement rates, product revenue. But this lens misses the full value of cross-sector collaboration.

In 2021, the Bridgespan Group conducted a study of health-focused nonprofits and found that many generated up to $6 in social benefit for every $1 spent, even when no short-term profit was realized.²

Examples of overlooked impact include:

Increased access to culturally competent care
Reduced trial dropout due to patient trust-building
Community co-design leading to more relevant clinical protocols
Enhanced reputational value and regulatory alignment

When we fail to measure these, we undervalue the true ROI of equity-driven health partnerships.

What Is Social Return on Investment (SROI)?

SROI is a methodology that assigns value, financial or qualitative, to the social, environmental, and health outcomes created by a program or initiative.³

An SROI process typically includes:

Stakeholder Mapping: Who benefits or is affected by the initiative?
Theory of Change: What is the causal pathway from investment to outcome?
Outcome Valuation: What dollar-equivalent or qualitative value can be assigned to results?
Impact Attribution: How much of the change is attributable to the partnership?
SROI Ratio: A calculated estimate of the return (e.g., $3 of impact for every $1 invested)

“SROI helps funders and partners speak the same language of value,” explains the UK Cabinet Office in its official guidance.³

Elevate Impact’s SROI Framework

We’ve adapted the SROI methodology to meet the specific needs of healthcare collaborations, with a focus on clinical innovation and equity. Our Impact Design Blueprint includes:

Element	Description
Co-Defined Success Metrics	Quantitative and qualitative goals created by all stakeholders, including patients and community partners
Equity-Centered Logic Models	Frameworks that show how actions lead to both system change and improved health outcomes
Dynamic Valuation Tools	Use of both proxy financial values (e.g., avoided ER visits) and narrative impact (e.g., trust restored)
Learning Reviews	Structured after-action reflection to ensure continuous improvement and adaptation

This approach enables healthcare organizations to both design for impact and prove impact in real terms.

RECOMMENDED READ: How to Build Equity Accountability Systems in Healthcare Research

Case Example: Massachusetts General Hospital’s Center for Innovation in Digital Health Equity

MGH’s Center partnered with a community health network to co-develop a mobile app that helps Black and Latinx patients manage chronic conditions.⁴

Using an adapted SROI model, they measured:

Reduction in ER visits (cost savings)
Increased medication adherence (clinical outcomes)
Patient satisfaction (qualitative impact)
Community perception of trust (narrative data)

Their estimated SROI: $4.10 per $1 invested—and a new model for technology design grounded in equity.

AFrom Reporting to Strategic Decision-Making

SROI isn’t just a reporting tool; it’s a strategic planning asset. It helps:

Funders decide where to invest
Partners align on goals
Leaders advocate for continued support
Communities assess whether their participation is delivering value

As McKinsey notes, “Impact metrics are increasingly a currency for innovation funding and legitimacy.”⁵

The question isn’t whether partnerships should generate social value. It’s whether we’re measuring it with the rigor, transparency, and credibility it deserves.

As healthcare shifts toward equity, collaboration, and shared accountability, we must move beyond anecdote and aspiration. SROI offers a path to do just that—bridging mission and metrics.

Because impact is not what we say we did.

It’s what changed, and who felt it.

References:

Emerson, J. (2003). The Blended Value Proposition: Integrating Social and Financial Returns. California Management Review.
The Bridgespan Group. (2021). Pay What It Takes: Funding Real Costs to Drive Real Impact in Healthcare. https://www.bridgespan.org
Cabinet Office UK. (2012). A Guide to Social Return on Investment.
Massachusetts General Hospital. (2023). Digital Health Equity Pilot Program Impact Summary. Internal report.
McKinsey & Company. (2022). Innovating for Impact: Metrics That Matter in Health Equity. https://www.mckinsey.com

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