Measuring key performance indicator in healthcare
Measuring key performance indicators in hospitals on a monthly basis will provide the management with insights on areas to impvoe.
Employee productivity – A balanced scorecard (BSC) in hospitals can be used to define performance management metrics for hospitals. The need for such metrics is driven by facts like patients expect a high level of service, medical professionals are adapting to new clinical demands and research solutions, and administrators must focus on managing resources as effectively as possible.
This approach enables hospitals to track financial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth. Thus, it addresses a serious deficiency in traditional management systems; their inability to link a company’s long-term strategy with its short-term actions.
Balanced Scorecard Approach for measuring key performance in hospitals with consultancy healthcare
Hospital business value:
The metrics relevant to hospital value will be operating margin, inventory turnover ratio, current ratio, days cash on hand. These are good measures of the financial performance of the hospital and an integral part of the executive support dashboard.
For calculation of target or benchmark levels of these metrics, the market can be segmented into hospitals depending upon the bed size, say <50 beds, 50-200 beds, 200-500 beds, and >500 beds. The benchmark levels for each metric can then be calculated using Activity Based Costing. The dashboard may also have other measures, for example – liquidity ratio, depending upon the scale and requirements of the hospital.
Hospital employee value:
Employee value is measured by employee satisfaction and retention. The relevant KPIs for employer value will be Voluntary Turnover, employee productivity – absence, Productivity – presenteeism, No. of Employee Grievances, etc. In order to ensure that your best employees stick to your firm, it is essential to put in place formal systems for employee appraisal and grievance management.
Hospital patient wait time – the value:
Patient value can be measured by clinical outcomes and patient satisfaction. It is important to measure the success rate in treatments. Patient satisfaction can be measured by a number of parameters like less patient wait time, the patient recommendation to others, nurse communication, doctor communication, staff responsiveness, room cleanliness, clear patient discharge instructions, etc.
Hospital learning and growth value:
The learning and growth value of the hospital is measured by improvement in the quality of its services as well as by offering newer services. It can be measured using these metrics; Reduced (or controlled) per capita cost of care, Investment in Skill development, Improved existing services, new services offered in the last quarter, etc.
All these elements of the Balanced Score Card (BSC) approach can be assimilated into a dashboard to give a high-level idea of the current health as well as a good prediction of the future health of the hospital to the executives. A dashboard containing these items with their actual and target values will save a lot of time that hospital owners invest in calculating and reaching a conclusion on the health of a hospital. Implementing a Balanced Scorecard in hospitals can help to drive an effective strategy.
Key performance indicator in healthcare
Our smart hospital solutions include patient wait time matrices, employee productivity, MIS with key performance indicators, workplace wellness, and measuring patient experience management solutions. – our data analytics tool for hospitals to provide the right information for owners and managers to make informed decisions.
Software Associates India is among the leading providers of packaged software solutions in India, with 250+ hospitals across 18 states, Cameroon, Kenya, Malawi, Maldives & Myanmar. Our hybrid model of Cloud and on-premise solution provides the best-of-breed solution for measuring the performance of hospitals in urban and rural-centric, multi-location centers. Netra eye hospital management and Vikas ERP for hospitals.