The Home Health Industry’s
12 Most Critical Metrics

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In this article you’ll learn the most critical metrics that companies in the Home Health Industry should track.

The article does not include metrics such as Profits and Sales that are critical to companies in all industries; rather the focus is on metrics more specific to the Fitness Center Industry.

By tracking your metrics, you will dramatically improve your business results.

Why? Because not only is the old saying “If you can’t measure it, you can’t improve it” true, but visibility into your metrics allows you to identify WHERE you can make the easiest and most impactful improvements.

For each metric, we will answer the following questions:

– What is the metric?

– How do you calculate this metric?

– Why is this metric important?

Let’s get started…

1. Patient Volume

What is this metric?
This metric is basic in the sense that it tracks the number of patients enrolled at a specific home healthcare agency.

patient_volume-20151104

Calculation: This metric is calculated by simply adding the total number of active patients enrolled at an agency.

Why is this metric important?
This metric is important because the number of patients served at a home health agency affects how the company performs financially. This metric is also important to track since agencies will need to properly plan their workforce size and schedule according to the number of patients they have

2. Care Effectiveness/Patient Improvement

What is this metric?
This metric measures a fitness center’s ability to turn leads into members.

care_effectiveness_patient_improvement-20151104
Calculation:
The metric can be calculated by dividing the number of home health episodes when the value on the discharge assessment displays less impairment then at the start of care over the number of home health episodes of care ending with a discharge during the a specific time period.

Why is this metric important?
This metric is important because it shows the ability of a home health care agency to improve a patient’s ability to perform daily functional activities.

3. Total Number of Medicine Errors

What is this metric?
This metric measures the number of medicine errors that take place whether they are identified prior to administering to the patient or after administering to the patient. Medicine errors may include giving the wrong medicine, giving the wrong strength of medicine, giving the wrong dosage or quantity, having incorrect label details, administering medicine that has expired, and administering medicine that was not fit for the illness.

total_number_of_medicine_errors-20151104
Calculation:
This metric is calculated by adding the total number of medicine errors during a specific time period.

Why is this metric important?
This metric is important because it speaks to the quality of care that an agency is providing to its client base as well as the agency and its workers being attentive to the medication needs of each client to keep them safe.

Do you currently know how you’re performing on each of these key metrics?
Click here to schedule a free demo with one of our dashboard builders. They’ll show you how we can build a dashboard that automatically calculates all your key metrics in real-time.

4. Percentage of Patients taken to Emergency Room/Admitted to a Hospital

What is this metric?
This metric measures the percentage of home care patients that require unplanned medical care from an emergency room/hospital visit.

percentage_of_patients_taken_to_emergency_room_admitted_to_a_hospital-20151104

Calculation:
This metric is calculated by dividing the number of home health occurrences where the patient required medical attention at a hospital by the total number of home health visits.

Why is this metric important?
This metric may be important in two different ways. It may show a home health agency’s attentiveness of their patient’s needs for additional medical care or it may show a home health agency’s ability to care for its patients and improve a patients health without the need for additional medical attention if the percentage of patients taken to the hospital is low.

5. Gross Profit

What is this metric?
This metric indicates the percent of sales a home care company makes after paying for costs incurred through servicing clients.
gross_profit-20151104
Calculation:

The calculation is based on home care agency’s revenue less the direct costs of producing its medical devices divided by the agency’s revenue.

Why is this metric important?
This metric is important because it specifies the amount of money a company is able to invest in other aspects of the organization such as marketing.

6. Patient Experience/Consumer Assessment of Healthcare Providers and Systems (CAHPS) Home Health Care Survey

What is this metric?
This metric measures the patient experience of individuals receiving care from a home health care agency that is Medicare certified. The Consumer Assessment of Healthcare Providers and Systems survey was implemented to ensure quality health care through accountability and public disclosures. In 2010, the survey became a requirement for the Medicare annual payment update.

patient_experience_consumer_assessment_of_healthcare_providers_and_systems_cahps_home_health_care_survey-20151104
Calculation:
The 34 question survey measures patient experience in the areas of care of patients, communication between provider and patient, specific care issues, and overall rating of care.

Why is this metric important?
This metric is important because the results allow for individuals to publicly view and compare home health care agencies. Survey results also hold home health care agencies accountable to improve their services if they are performing below par.

7. Client Turnover

What is this metric?
This metric measures the number of patients/clients that leave a home care agency, which may be affected by those that are unsatisfied with the level of home care service provided, those who may have been institutionalized, or those who have passed away.

client_turnover_-20151104

Calculation:
Client turnover can be calculated by taking the number of clients that stopped services with an agency during a specific time period divided by the total number of clients that were with the agency during the same time period.

Why is this metric important?
This metric is important because it may identify poor client satisfaction if the client turnover is significant.

Want to discuss the specific metrics you’re tracking (or want to track) for your company?
Click here to schedule a free consultation and demo with one of our dashboard consultants.

8. Average Weekly Billable Hours

What is this metric?
This metric measures the amount of billable business that an agency averages each week and may include both hourly care and live-in care hours.
average_weekly_billable_hours-20151104
Calculation:
This metric is measured by adding all billable hours for a year and then dividing by 52.

Why is this metric important?
This metric is important for a home care agency to measure because it ties into an agency’s revenue.

9. Client Average Length of Service

What is this metric?
This metric measures the average length of service a home care agency provides to its patients.
client_average_length_of_service-20151104
Calculation:
Client average length of service can be calculated by taking the total number of active clients during a time period and dividing by the total number of months that the patients were serviced.

Why is this metric important?
This metric may be used as a satisfaction measure. If the patient length of service is above average, the metric indicates that the home care agency is most likely providing quality care to its patients and in turn retaining its clients.

10. Revenue Per Visit

What is this metric?
This metric measures the amount of money an agency makes during each visit to a patient’s home.
revenue_per_visit-20151104

Calculation:
This metric is calculated by dividing the total revenue made through a patient by the number of visits.

Why is this metric important?
This metric is important because it can speak to the effectiveness of a home care agency as well as provide an agency with a good estimate of revenue projections.

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11. Inquiry to Admission Ratio

What is this metric?
This metric measures the number of inquiry calls received through potential clients or referrals who are turned into clients of the home care agency.
inquiry_to_admission_ratio-20151104

Calculation:
This metric may be calculated by dividing the actual number of inquiry/referral calls that turn into clients by the total number of inquiry/referral calls.

Why is this metric important?
This metric is important because it is an indicator of a home care agency’s sales performance.

12. Service Failures

What is this metric?
This metric measures the number of events in a specific time period where the level of home health agency service was not met due to missed deliveries, late deliveries, patient complaints, lack of communication, device failures, or failure to bring ancillary items.
service_failures-20151104

Calculation:
This metric may be calculated by adding the number of events where a home agency either missed or was late for a service or did not provide satisfactory care.

Why is this metric important?
This metric is important because it measures the quality of care being provided to a patient or client base.