Key Performance Indicators For Hospitals

In a multispecialty hospital, the CFO is responsible for the delivery of P&L. Hence, every CFO has to understand the variables on which the profitability of the hospital depends on. They are often known as the key performance indicators. These indicators not only helps in driving the profitability but also provide early warning whenever something is not going in the appropriate direction. Therefore it is mandatory for a CFO not only to understand the KPIs but also maintain a systemic discipline to calculate the same initially on daily basis to tap the financial pulse and intervene as soon as inappropriateness is noticed. Some of the critical KPIs are as follows:

Average Hospital Stay: In top-performing multi-specialty hospitals, the stay of any normal surgical patient varies from 4 days to 7 days while the average stay of a non-surgical patient varies from 2 days to 14 days based on the ailment and condition of the patient. The length of the stay has a direct impact on the profitability of the hospital as well as the total bill the patient has to pay.

Bed Occupancy Rate: Bed occupancy for multi-specialty hospitals is generally between 60-70%. But it can be upto 75%…