Introduction
When it comes to measuring and tracking nursing home performance, key performance indicators (KPIs) can provide valuable insight into a facility’s efficiency. These metrics can be used to identify areas for improvement and gauge in terms of functioning in the market. Knowing which KPIs will be tracked and how to calculate them can allow nursing home owners, operators and managers to make more informed decisions about their facility’s performance.
Here is a list of the top seven nursing home KPIs that should be tracked in order to better understand the performance of a nursing home:
- Occupancy rate
- Staff turnover rate
- Average customer length of stay
- Average healthcare costs per occupant
- Customer retention rate
- Average Response Time to Service Requests
- Average Billing Accuracy Rate
Occupancy rate
Definition
Occupancy rate is a metric that measures the percentage of beds in a nursing home that are currently occupied. It is an indicator of the demand for a facility, as well as an estimate of its profitability.
Benefits of Tracking
Tracking a nursing home’s occupancy rate can provide valuable insight into the health of the business. It can provide a real-time snapshot of plant performance and can help identify potential issues or opportunities. The occupancy rate can also be used as a benchmark when comparing different nursing homes.
Industry Benchmarks
In the United States, the average nursing home occupancy rate is around 88%. However, this rate varies from region to region, as well as from facility to facility.
How to calculate
The occupancy rate of a nursing home can be calculated by dividing the number of beds currently occupied by the total number of beds in the facility. The result must be expressed as a percentage.
Calculation example
For example, if a nursing home has 250 total beds and 200 of those beds are currently occupied, the occupancy rate would be 80%.
Tips and tricks
- Regularly monitor occupancy to identify any changes in facility demand.
- Compare occupancy rate to industry benchmarks to identify opportunities for improvement.
- Analyze occupancy over time to identify trends.
Staff turnover rate
Definition
The employee turnover rate is the percentage of employees who leave a nursing home within a given period. It is used to assess the stability of a nursing home’s staff and to identify areas where the nursing home can make improvements in order to retain employees.
Benefits of Tracking
Tracking staff turnover is beneficial because it provides nursing homes with an understanding of how their workforce is changing. It helps them identify potential issues such as low morale, inadequate compensation, or a lack of career development opportunities. It also allows nursing homes to measure the effectiveness of their retention strategies and make adjustments if necessary.
Industry Benchmarks
The industry benchmark for employee turnover rate is usually between 10 and 15%. A turnover rate below 10% is considered low and a rate above 15% is considered high. It is important to note that turnover rates vary depending on the size of the nursing home and the region in which it operates.
How to calculate
The formula for calculating the employee turnover rate is:
Calculation example
For example, if a nursing home had 100 employees and 10 of them remained for a given period, the staff turnover rate would be calculated as follows:
Tips and tricks
- It’s important to keep track of why employees leave.
- Analyze data to identify turnover rate trends.
- Develop strategies to reduce high turnover rates, such as offering better pay or providing more training and development opportunities.
- Monitor the effectiveness of any retention strategy implemented.
Average customer length of stay
Definition
Average client length of stay (ACL) is a key performance indicator (KPI) for nursing home facilities. This is the average number of days a patient stays in a nursing home before being discharged. This metric is a measure of how quickly patients are admitted and discharged from the facility, and therefore it can be used to gauge the overall efficiency of the nursing home.
Benefits of Tracking
Tracking average client duration (ACL) helps nursing homes better understand their patient turnover rate and the overall efficiency of their facility. This metric can be used to identify potential areas for improvement within the nursing home, such as streamlining the admissions process or improving the quality of care provided to patients.
Industry Benchmarks
The industry benchmark for average guest length of stay (ACL) is between 80 and 90 days. Nursing homes that have an ACL less than 80 days old may admit and discharge patients too quickly, leading to lower quality of care. Nursing homes that have an ACL older than 90 days may admit and discharge patients too slowly, leading to inefficiencies in the admissions process.
How to calculate
The average client length of stay (ACL) can be calculated by dividing the total number of days that all patients stayed in the care home by the total number of patients that were admitted during the same period.
Calculation example
For example, if a nursing home had 20 patients admitted in a month, and the patients stayed in the nursing home for a total of 1,400 days, then the average length of stay for clients (ACL) would be:
KPI Tips and Tricks
- Monitoring the average client length of stay (ACL) KPI can help nursing homes identify opportunities for improvement.
- Nursing homes should strive to maintain an average client length of stay (ACL) between 80 and 90 days.
- Nursing homes should track average client length of stay (ACL) for individual patients to better understand their overall effectiveness.
- Nursing homes should also track average client length of stay (ACL) over time to identify potential trends in their patient turnover rate.
Average healthcare costs per occupant
Definition
Average healthcare cost per occupant (ApoHE) is a key performance indicator (KPI) that measures the average amount spent on healthcare for each resident in a nursing home. This metric is used to track the cost of providing healthcare services to residents over a period of time.
Benefits of Tracking
Apohe’s tracking helps nursing homes measure the effectiveness of their healthcare services and identify areas for improvement. It also helps nursing homes understand the financial impact of providing health care services to residents. By following Apohe, nursing homes can make informed decisions about how to allocate resources and ensure they are providing quality healthcare services at an affordable cost.
Industry Benchmarks
The average Apohe for nursing homes in the United States is ,000 per resident, per year. This figure can vary greatly depending on the type of services provided and the geographic location of the nursing home. It is important for nursing homes to benchmark their apohe against industry standards to ensure that they are providing quality healthcare services at an affordable cost.
How to calculate
Apohe is calculated by dividing the total amount spent on health services for residents of a nursing home by the number of residents. The formula is:
Calculation example
For example, if a nursing home spent 0,000 on health services for its residents and had 50 residents, the Apohe for that nursing home would be ,800 (0,000 ÷ 50 = ,800 ).
Tips and tricks
- It is important to follow Apohe regularly to ensure that the nursing home is providing quality healthcare services at an affordable cost.
- It is also important to compare industry standards to identify areas for improvement.
- The cost of healthcare services can vary greatly depending on the type of services provided and the geographic location of the nursing home.
Customer retention rate
Definition
Customer retention rate (CRR) is a metric used to measure the number of existing customers who continue to use a service or purchase a product over a certain period of time.
Benefits of Tracking
Tracking and tracking customer retention rate helps business owners understand the effectiveness of their customer service and marketing strategies. It’s also a great tool for measuring customer loyalty and identifying potential areas for improvement. Additionally, this metric can provide insight into the customer journey and help build strong customer relationships.
Industry Benchmarks
The average customer retention rate in the nursing home industry is around 85-95%.
How to calculate
The formula to calculate customer retention rate is:
- E = number of existing customers at the end of the period
- S = number of customers at the beginning of the period
Calculation example
For example, if a nursing home has 250 clients at the start of the year and 225 clients at the end of the year, the client retention rate is:
Tips and tricks
- Set goals to increase customer retention rate
- Analyze customer data to identify trends and areas for improvement
- Improve customer service and develop customer loyalty programs
- Offer rewards and discounts to customers for loyalty
Average Response Time to Service Requests
Definition
Average service request response time is a key performance indicator (KPI) used to measure the time elapsed from when a service request is made until a response is provided. This metric is typically used in nursing homes to measure the effectiveness of staff in responding and responding to resident service requests.
Benefits of Tracking
Tracking this metric is important for nursing homes to ensure residents receive quality care in a timely manner. It also helps identify areas for improvement, such as staff training and resource management, that may be needed to reduce response time and improve quality of care.
Industry Benchmarks
The industry benchmark for average response time to service requests is 24 hours or less. This benchmark should be used as a benchmark when evaluating the performance of nursing home staff.
How to calculate
The formula for calculating the average response time to service requests is:
Calculation example
For example, if a nursing home staff receives 10 service requests and the total elapsed time is 120 hours, the average response time for service requests is 12 hours.
Tips and tricks
- Regularly monitor the average response time for service requests to ensure the nursing home is meeting the industry index.
- Implement a system to track service requests and their corresponding response times.
- Identify areas for improvement and implement strategies to reduce response time and improve quality of care.
Average Billing Accuracy Rate
Definition
The Average Billing Accuracy Rate (ABAR) is the measure of how accurately the nursing home is able to bill for services rendered. This metric examines the accuracy of the billing process, from collecting patient information to submitting claims. This is a key performance indicator (KPI) for nursing homes because it demonstrates the facility’s ability to efficiently and accurately manage billing.
Benefits of Tracking
Tracking ABAR is important for nursing homes because it provides an indication of the accuracy and efficiency of the billing process. By following the ABAR, nursing homes can identify errors in the billing process and make necessary adjustments to improve accuracy and efficiency. Additionally, tracking ABAR can help nursing homes stay informed of industry benchmarks and compare their billing accuracy with other facilities.
Industry Benchmarks
The industry benchmark for ABAR is typically 95%, which means 95% of nursing home bills are accurate. However, the ABAR may vary depending on the type of installation. For example, nursing homes specializing in long-term care may have a lower benchmark than those specializing in short-term care.
How to calculate
ABAR can be calculated using the following formula:
Calculation example
For example, if a nursing home submitted 1,000 invoices and 800 of them were correct, the ABAR would be calculated as follows:
Tips and Tricks for KPIs
- Ensure billing staff are properly trained and have a comprehensive understanding of the billing process.
- Implement a billing audit process to identify and correct errors.
- Use technology to automate the billing process and reduce manual errors.
- Regularly monitor the ABAR and make any necessary adjustments.
Conclusion
By tracking and evaluating KPIs, nursing home owners and managers can better understand their facility’s performance and how it compares to industry standards. This can provide valuable information to decision makers and help inform future strategies for improvement. Using these seven best nursing home KPI metrics can help ensure the continued success and growth of a nursing home establishment.
- Home
- Occupancy rate
- Staff turnover rate
- Average customer length of stay
- Average healthcare costs per occupant
- Customer retention rate
- Average Response Time to Service Requests
- Average Billing Accuracy Rate