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What are the x performance indicators of a strong healthcare system?



strong healthcare system

KPIs help business administrators analyze, strategize, optimize, and eventually transform the business structure and strategies to increase outcomes. Like every other industry, the healthcare industry uses KPIs to measure performance, patient and worker satisfaction. 

In addition, these KPIs help healthcare facilities improve their performance by identifying their shortcomings compared to other facilities.

The healthcare industry’s focus is shifting from the science behind healthcare towards providing the best healthcare services possible in the present age by optimizing their performance and managing costs in the struggle to achieve equity healthcare. 

Healthcare KPIs can be divided further. These divisions are:

Healthcare KPIs for monitoring internal processes 

The internal KPI for every healthcare and emergency care service is formulated after keeping the staff in mind. A significant portion of it includes staff management and employee satisfaction. After all, the team is the key to an organization’s success. These KPIs include:

  1. Training per department 

As the healthcare system evolves, the industry has to keep the workers up-to-date; otherwise, workers can make mistakes if they don’t have a solid grasp of technology and equipment. To make sure that they perform their job correctly, healthcare facilities must establish necessary recertification programs. 

An efficient healthcare system allows its employees to enroll in medical programs like courses on dealing with infectious diseases, simulation programs, and certifications like a firefighter group recertification to ensure that every employee in the healthcare system is up-to-date with technology, equipment, and procedures. 

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These training programs help minimize employee mistakes and allow them to perform their duties properly.

  1. Error rate 

This KPI measures the percentage of errors made by the employees. It is one of the most important KPIs as it determines the staff’s capabilities and effectiveness. The healthcare administrators measure the error rates with a ratio against the number of treatments provided and the errors made by the team (if any).

  1. Cancellation rate 

Clinics and hospitals measure their reputation and demand according to this KPI. If patients start canceling or missing their appointments with the healthcare professional, it negatively impacts resources and the physician-patient relationship. 

On the other hand, the cancellation rate allows the facility to address the main issue and make strategies to eradicate them.

  1. Patient safety 

Every healthcare facility has specific protocols that ensure their patients are safe. Therefore, to keep track of these protocols and increase patient satisfaction, hospitals use this KPI. It measures the healthcare facility’s ability to provide high-quality healthcare services to the patients. 

This metric helps hospital management recognize the source of errors in the facility, whether the staff or the equipment. It also measures the facility’s ability to keep them safe and reduce errors. Managing the problems and strategizing accordingly helps in increasing patient satisfaction.

Operational healthcare KPI 

This division of KPI focuses on the facility’s overall performance and improves efficiency. It helps in optimizing the operational costs of the facility, in turn promoting patient satisfaction. Available healthcare KPIs include:

  1. Average hospital stay 

This KPI helps the facility keep track of the average time patients spend and use the hospital facilities. It is a very generic yet somewhat helpful metric. It allows the facility to conclude various organizational activities in the hospital. 

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Therefore, they can group similar patients according to their condition and treatment.

  1. Bed or room turnover 

This KPI helps the facility keep track of how many patients are coming or leaving the facility. Hospitals also have to consider re-admission rates to ensure that it is not an issue or a premature discharge on their part that causes a patient to come back

  1. Medical equipment utilization

Every healthcare facility needs advanced equipment to streamline functions, but what type of equipment it’ll need or the amount is determined by this KPI. In addition, it allows the facility to control the costs and maintenance expenditures.

  1. Average patient wait time

Hospitals and clinics are often bustling with people. Therefore, patients have to wait longer before their turn. This KPI helps in measuring the average amount of patients that are waiting before their appointment. 

It helps improve and streamline the process of scheduling appointment allocations to increase patient satisfaction.

Healthcare financial metrics

Healthcare financial metrics are responsible for analyzing the cost of treatment, human capital, and claims. Therefore, utilizing these KPIs plays an essential role in reducing the cost inefficiencies. They include:

  1. Patient drug cost per stay 

Most healthcare managers are not aware of this metric. But hospitals must realize that every medicine and drug comes with a price tag. This price tag creates an issue when the staff unknowingly administers medication to patients who cannot afford it. 

In another case, insurance companies refuse to cover particular medicines and drugs costs due to their high price. This can result in a higher fee if the hospital is unable to get the money.

  1. Average treatment charge 
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This KPI indicates the total amount hospitals charge for patient treatment. It helps in managing the efficiency and the effectiveness of the patient treatment system in a healthcare facility. This indicator further breaks down into the type of treatment the patient receives and is helpful for administrators when they aim to reduce costs.

  1. Insurance claim processing time

This KPI helps in monitoring the time associated with when the insurance company processes the claim. Different insurance companies take their own sweet time. But keeping track helps in managing the cash flow within the facility and keep a check on accounts receivable

  1. Operating cash flow 

Like every other business in the world, the medical facility needs money and resources to operate upon. Many healthcare facilities receive subsidies from the government. However, they still charge for healthcare services. 

This metric helps measure the amount the healthcare facility generates from routine operations at the clinic and service charges.


Like every other business industry, the healthcare industry must use KPIs to measure their performance quality and take steps accordingly. These KPIs allow the facility to keep track of patient outcomes, patient satisfaction, and treatments. 

It also allows them to keep track of all the cost flow within the facility. It includes government grants, service fees, employee salaries, budgets, equipment, and maintenance costs. Using these KPIs allows the healthcare system to adapt to the constant changes in demands and needs of patients. It enables them to make their performance more efficient and effective.

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