The Top 5 Healthcare KPIs to Keep Your Business Healthy
Posted on 17th May 2017 in KPIs
Written by Freya Hughes
Healthcare industries vary considerably across the globe. Each country or territory has their own way of caring for their populations, so consider our KPIs as somewhat of a springboard. Patients come first, in private or public practices alike, so let us save you some time deciding which KPIs to get started with so you can focus on treating patients.
Like any industry, it’s crucial to monitor and maintain your KPIs in the health sector. Healthcare surgeries and offices tend to operate in similar ways when they’re in close proximity but, as international flag-bearers, we know everyone is different. We’ve summed up our top five KPIs for a healthcare practice to be monitoring below so you can focus on care, rather than worrying about cash.
Our KPI Library is open all hours for you to browse the various metrics we know will help your business stay in good shape.
1. Patient vs staff ratio
You need to calculate the average number of patients that are coming through your doors per day to accurately predict how many members of staff you need on duty at a given time. There will be days with more patients than staff, so it’s important that you schedule enough staff for when it does get busy. If you’re an appointment-only practice, this can be quite a simple metric to keep an eye on, but if you’re operating an emergency room, you’ll do well to overestimate, especially if there’s an event on in the area or the weather is extreme.
Whatever the operations of your practice, measuring this KPI will indicate if you’re on point with your staffing (and that means staffing costs too). Be careful not to have too many consultants, for example. They’re the most qualified people in your business and the most expensive. To mitigate this, measure and manage staff hours relative to the cash coming into your practice and consider how future alterations may change things. If you need to hire, for example, forecast the financial impact with FUTRLI rather than hoping for the best result.
2. Average patient wait time
If you charge per treatment, this is a key KPI to watch. Just like in other industries, the longer a person waits for something, the less likely they are to follow through with payment for treatment. A high wait time indicates problems with staffing. If you can get a good balance of staff throughout each available shift pattern, your patients will not only be in danger but will not trust the services you’re providing. You’ll need to address this issue as a low wait time alludes to operational efficiency, which will be noticed by staff and patients alike. Calculate your average wait times with FUTRLI.
3. Average treatment value
This KPIs will show you how much revenue is being generated per treatment during a given period. This is important for you to measure as it directly affects the amount of cash you’re earning compared to spending. Like with many other public-facing industries, it’s important you order the right ratio of stock to how many patients are likely to come through the doors.
Consider sub-divisions by treatment or patient type as you’ll have a clearer understanding of which channels are providing the most profit for your business. If you’re not sure about the mathematics involved in this KPI, look no further.
4. Cost per patient stay
Averaging out the amount of time and money you’re spending on each overnight patient gives you an understanding on how much investment you need to make in each patient. You’ll need to consider non-financial data here, such as food, medication and furniture, while bearing in mind additional cleaning and electrical costs.
This is an interesting metric to measure as most of the investment (eg, the bed itself and the room the patient inhabits) is a one-off payment. Following this, ensure you have cost-appropriate nourishment available to keep your revenue looking healthy, and your patients happy! With so many different aspects to this KPI, you need to be forecasting your figures so you know you can afford to operate at the level you want to be at. Learn more about forecasting with FUTRLI.
5. Bed/room turnover
This KPI measures how fast patients are moving in and out of your practice. When you measure this, you’re essentially measuring the efficiency of your business. If you’re interested in patient satisfaction, this is a great place to start. Are your staff doing everything in their power to rehabilitate patients, or are they cutting corners to meet targets? In the healthcare industry, revenue is sought after, but cannot be favoured over the care itself.
Another KPI which you might want to measure alongside the turnover of your beds/rooms is your re-admittance rates. If you look at both, you’ll see evidence that patients are being discharged at the correct time for their recovery. If there’s a correlation between the two, it’s definitely time to be looking at why and how you can prevent this happening in the future.