Performance measures for Hospital business
Hospitals are cost intensive business, both in capital as well as operational expenditure. The article ‘ How much does it cost to run a hospital? ’ gives a detailed understanding of different cost heads with their proportion. In addition, rising competition and increasing regulations are just making the hospital business even more difficult. For a hospital business manager, it is crucial to closely monitor the business performance of the hospital. Following are the list and description of some key measures that gives a good understanding of hospital’s business performance. BED OCCUPANCY RATE (BOR) This is by far the most commonly quoted measure to describe how well a hospital is doing. BOR gives a gross idea about how well the hospital’s bed capacity is being utilized. BOR is the percentage of available beds that is occupied by admitted patients at a given point of time. BOR can also be calculated for a period (like for a month), in which case, it is average BOR for tha...