Understanding Key Performance Indicators for Assisted Living Facilities

Introduction

Standing out in an increasingly competitive lifestyle industry increasingly means taking the time to measure and evaluate what works and what doesn’t. This is why tracking the right Key Performance Indicators (KPIs) is an essential part of delivering a successful assisted living facility. KPIs can provide owners and operators with a snapshot of their business’ performance while allowing them to identify areas that need improvement. This can help maximize revenue, optimize operational efficiency, and ultimately deliver excellent resident experiences. So what are the best KPIs for assisted living facilities and how can you track and calculate them? Keep reading to find out.

Occupancy rate

Definition

The occupancy rate of an assisted living facility is a measure of the percentage of beds filled with paying clients. It is a key performance indicator (KPI) used to assess the financial performance of a facility.

Benefits of Tracking

Tracking the occupancy rate of an assisted living facility is important for a number of reasons. It provides a clear indication of how the facility is performing financially and achieving its goals. It also allows managers to identify and address potential issues before they become too serious, as well as take advantage of opportunities to increase revenue.

Industry Benchmarks

The average occupancy rate for assisted living facilities is usually between 70-90%. Depending on the region and other factors, the rate may be significantly higher or lower. It is important to compare your facility’s performance to those in the same region, as well as the national average.

How to calculate

The occupancy rate of an assisted living facility can be calculated by dividing the total number of beds filled with paying clients by the total number of beds in the facility. The result must be expressed as a percentage.

Calculation example

For example, if an assisted living facility has a total of 100 beds and 80 of them are filled with paying clients, the occupancy rate would be calculated as follows:

Tips and tricks

• Regularly monitor your property’s occupancy rate to ensure it meets the industry index.
• Identify opportunities to increase revenue by increasing occupancy.
• Focus on quality over quantity when it comes to filling beds.
• Work closely with your staff to create an attractive environment for potential customers.

Revenue per occupied unit

Definition

Revenue per occupied unit (REVPOU) is a key performance indicator (KPI) for assisted living facilities that measures the financial performance of the facility. It is calculated by dividing the total revenue generated by the facility by the number of occupied units. Revpou is used to determine the efficiency of facility operations and its ability to generate revenue.

Benefits of Tracking

Revpou’s tracking provides insight into the financial performance of an assisted living facility. With this metric, managers can identify areas that need improvement and strategize to increase revenue. Additionally, Revpou is a good indicator of how well the facility is managing occupancy rates, as well as the effectiveness of marketing efforts.

Industry Benchmarks

The industry benchmark for Revpou is ,000 to ,500 per occupied unit. However, this varies depending on location and type of installation. Assisted living facilities that are located in more affluent areas, such as urban areas, generally have a higher REVPOU than those located in rural areas.

How to calculate

Revpou is calculated by dividing the total revenue generated by the facility by the number of occupied units. Revpou’s formula is:

Calculation example

For example, if an assisted living facility generates ,000,000 in total revenue and has 100 occupied units, the Revpou would cost ,000.

Tips and Tricks for KPIs

• Track and monitor Revpou regularly to identify areas for improvement.
• Compare Revpou to industry benchmarks to ensure performance is in line.
• Analyze factors that can cause underperformance, such as occupancy rates and marketing efforts.
• Develop strategies to increase revenue, such as offering additional services or expanding the facility.

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Quality of care survey scores

Definition

Quality of Care Survey Scores (CQSS) are metrics that measure the quality of care provided by an assisted living facility. The survey asks caregivers, family members and residents a variety of questions about the care provided, including the level of care, the cleanliness of the facility and the responsiveness of staff.

Benefits of Tracking

Tracking CQSS metrics can help assisted living facilities identify areas where they need to improve, as well as areas where they excel.

Industry Benchmarks

The industry benchmark for CQSS is a score of 70 or higher. This score indicates that the facility provides a satisfactory level of care and meets the needs of its residents.

How to calculate

Calculation example

For example, if a facility had 400 total responses and 300 of them were positive, the CQSS for that facility would be:

Tips and tricks

• Be sure to collect feedback from all stakeholders, including residents, family members and staff.
• Encourage honest feedback by assuring respondents that their responses will remain anonymous.
• Take action on the feedback you receive; Use it to improve your facility and the quality of care.

Average length of stay

Definition

Average Length of Stay (ALOS) is a key performance indicator (KPI) used to measure the time a resident spends in an assisted living facility. It is calculated by taking the total number of days a resident stayed at the facility divided by the total number of residents during that period.

Benefits of Tracking

Tracking and calculating ALOS can provide insight into the quality of care provided in an assisted living facility. It can also help identify areas for improvement, as well as the effectiveness of changes made.

Industry Benchmarks

The average ALOS for assisted living facilities ranges from 1.5 to 2 months, depending on the type of care provided and the size of the facility.

How to calculate

ALOS is calculated by dividing the total number of days a resident stayed in the facility by the total number of residents during that period. The formula is:

Calculation example

For example, if an assisted living facility had 10 residents and they stayed a total of 300 days, the alos would have 30 days (300/10 = 30).

Tips and tricks

• Be sure to track and calculate aloss regularly, as it can provide valuable insight into the quality of care provided in an assisted living facility.
• Monitor aloss against industry benchmarks and make adjustments as needed.
• ALOS can be used as an indicator of how an assisted living facility is managing its resources.

Number of complaints

Definition

The number of complaints is a metric used to track the total number of complaints filed regarding the services of an assisted living facility. This metric is used to measure customer satisfaction and the quality of services provided.

Benefits of Tracking

Tracking the number of complaints received from customers can help an assisted living facility identify areas for improvement and potential service issues. This information can then be used to implement strategies and make changes that will improve customer satisfaction.

Industry Benchmarks

The average number of complaints for assisted living facilities is between 1 and complaints per month. This metric can be used to compare the performance of an assisted living center to other facilities in the industry.

How to calculate

The number of complaints metrics can be calculated by adding the total number of complaints received over a certain period (monthly, quarterly, etc.).

Calculation example

For example, if an assisted living facility received 10 complaints in June, 7 complaints in July, and 5 complaints in August, the total number of complaints for that time period would be 22.

Tips and tricks for tracking this KPI

• Track the number of complaints monthly to monitor customer satisfaction changes over time.
• Use customer feedback surveys to identify areas for improvement.
• Track customer complaints by type to identify common issues.
• Keep track of the number of resolved complaints to measure the effectiveness of customer service.

Staff turnover rate

Definition

Staff turnover rate is a KPI metric used to measure employee turnover rate in an assisted living facility. It is calculated as the number of employees who left the facility over a certain period of time, divided by the average number of employees during that period.

Benefits of Tracking

Tracking employee turnover rate is important in order to track employee satisfaction and loyalty. It can also be used to assess the effectiveness of staff recruitment and retention efforts. Additionally, tracking this KPI helps identify areas of improvement that can be addressed to reduce turnover and ensure a high quality workforce.

Industry Benchmarks

The industry benchmark for employee turnover rate is usually around 15-20%. This means that for every 100 employees in an assisted living facility, 15-20 will leave within a certain time frame.

How to calculate

The staff turnover rate can be calculated using the following formula:

Calculation example

For example, if an assisted living facility had an average of 100 employees in a given month and 10 employees remained during that month, the staff turnover rate would be:

Tips and tricks

• Regularly monitor staff turnover to identify areas for improvement.
• Conduct exit interviews to understand why employees are leaving.
• Implement staff retention strategies to reduce turnover.
• Compare your turnover rate to industry benchmarks.

Resident Satisfaction Score

Definition

The Resident Satisfaction Rating is a metric used to measure overall levels of resident satisfaction with assisted living facilities. It is based on residents’ responses to surveys and interviews conducted by staff members.

Benefits of Tracking

Tracking resident satisfaction ratings is important for assisted living facilities. This helps them identify areas where they can improve the quality of their services, as well as assess the effectiveness of their current strategies. Additionally, it can provide insight into the general well-being of residents, which can be used to improve facility operations.

Industry Benchmarks

The industry benchmark for resident satisfaction rating is usually set at 85% or higher. This is based on residents’ responses to surveys and interviews conducted by staff members.

How to calculate

The Resident Satisfaction Rating is calculated by dividing the number of satisfied residents by the total number of residents in a facility. The formula for this metric is:

Calculation example

For example, if a facility has 10 residents and 8 of them are satisfied, the resident satisfaction rating would be calculated as follows:

Tips and tricks

• Make sure that the survey questions used to measure resident satisfaction are relevant to the services offered by the facility.
• Regularly track resident satisfaction ratings to identify any areas for improvement.
• Provide feedback to residents to help them understand the importance of their opinions.

Conclusion

Assisted living facility KPIs are invaluable tools for tracking operational efficiency, resident satisfaction, and facility performance. By tracking and analyzing the seven most important key performance indicators, assisted living facility owners and operators can get the information they need to compete in the industry and maximize their facility’s success.

The seven most important KPIs for assisted living facilities are occupancy rate, revenue per occupied unit, quality of care survey scores, average length of stay, number of complaints, turnover rate staff and resident satisfaction rating. Each of these metrics should be regularly monitored and analyzed to identify areas of opportunity and optimize operation performance.

By tracking and analyzing facility KPIs, owners and operators of assisted living facilities can better understand the performance of their facilities and make changes to ensure they remain competitive and successful in the industry.