- Volume compared to budget and prior year’s period
- Specialty mix compared to budget and prior year’s same period
- Net revenue
- EBITDA (earnings before interest, taxes, depreciation and amortization)
- Salaries, wages and benefits
- Medical supplies (break out pharmacy and implants, if possible)
Here are 18 other key indicators Mr. Bogardus recommends you compare to your budget and prior year periods.
Operational
1. Net revenue per case
2. Gross charges per case
3. EBITDA per case
Materials management
4. Supply cost per case
5. Inventory turnover
6. Supply cost as a percentage of net revenue
Productivity
7. Salaries, wages and benefits per case
8. Staff hours per case
9. Cases per fulltime employee (FTE)
10. Total paid FTEs
Business office
11. Collections as a percentage of net revenue
12. Collections compared to cash goals — Community Health Systems uses prior two months net revenue minus bad debt)
13. Total bad debt over 150 days
14. Percentage of A/R over 60 days and 150 days
Clinical
15. Number of post-operative infections
16. Number of transfers
17. Number of patient satisfaction responses that were unfavorable
18. OR turnover time (usually not measured monthly but should be tracked regularly)
