What metrics should hospitals use for business planning?
Answer: It depends if you are looking at global or department-specific industry benchmarks. The following are some global benchmarks. Most local associations can provide financial comparisons.
- Accounts receivable days
- Accounts payable days
- Days cash on hand
- Debt service coverage
- Average age of plant
- Case mix index
- Inpatient and outpatient volume
- Operating income/profit margin percentage
- FTE per adjusted occupied bed
This question was answered by: Caswell Samms, network CFO, Lincoln Medical Center, NYC Health + Hospitals, Bronx, N.Y.
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