Knowing your facilities key metrics and numbers is invaluable to being able to tell your department's story+. Despite competing priorities throughout an operator’s day, it is critical to keep AHF benchmarking tools at your fingertips. One suggestion is to focus on one or two critical Key Performance Indicators (KPI).
AHF Benchmarking Express Data Point Highlight:
Cost net of cash per patient or resident day provides the insight needed to measure operational performance at a glance. This KPI captures the true costs of operations as the calculation shows the relationship of cash revenue against costs. The formula is:
(Food+Supply+Labor costs) minus (Cash Revenues) divided by Patient/Resident Days
The Benchmarking Express™ tool provides filters to easily compare your facility, with reports, graphs and charts, to like-sized facilities, as well as review and trend your own performance over time.
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Why is this data point so helpful? The periodic review of this KPI provides operators the opportunity to quickly spot the need to complete a deeper dive into other analytics readily available within AHF’s Benchmarking ExpressTM program.
- Are my food or supply costs higher than similar facilities?
- Is my labor cost higher, and does this relate to regional pay scales or do I need to look closer at productive hours per meal or day?
- How do my cash sales compare to other operations? Consider check average, menu mix and food cost margins, technology (mobile apps, kiosks etc.)
This comparison is critical as larger hospitals will reflect lower cost net of cash versus smaller facilities, due to economies of scale. Smaller facilities require core staff and typically lower retail sales, leading to increased cost net of cash per patient/resident day.
Once you master one or two KPI’s, move on to more! AHF’s Benchmarking ExpressTM program allows you to easily track up to 30 KPIs and compare yourself to others with ease. How do your metrics compare with other facilities?
If you aren’t currently benchmarking with AHF, it’s easy to get started. Learn more here. Email AHF staff with any questions and to get connected with a Benchmarking Committee member who can help.