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How do you measure your healthcare organization's success?

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Measuring your healthcare organization's success is not only important for demonstrating your value to stakeholders, but also for identifying areas of improvement and innovation. However, success can be defined and measured in different ways, depending on your goals, context, and perspective. In this article, you will learn about some of the common methods and metrics that healthcare managers use to evaluate their performance and impact.

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1 Quality of care

One of the most fundamental aspects of healthcare success is the quality of care that you provide to your patients and clients. Quality of care can be assessed by using indicators such as patient satisfaction, clinical outcomes, safety, and adherence to standards and guidelines. You can use surveys, audits, reviews, and feedback systems to collect and analyze data on these indicators. Quality of care can also be benchmarked against other organizations or industry best practices to compare your performance and identify gaps or strengths.

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A. Alex Yarijanian

Expert in Managed Care & Healthcare Innovation, Business Coach, and Investor
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Clinical Outcomes: Mortality Rates: Death rates for specific conditions or procedures. Readmission Rates: Percentage of patients readmitted within a specific time frame (e.g., 30 days) after discharge. Incidence of Hospital-Acquired Infections: Rates of infections acquired during hospital stays. Complication Rates: Rates of medical complications post-surgery or treatment.

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2 Financial performance

Another key dimension of healthcare success is the financial performance of your organization. Financial performance can be measured by using indicators such as revenue, expenses, profitability, cash flow, and return on investment. You can use financial statements, reports, and ratios to monitor and evaluate these indicators. Financial performance can also be influenced by external factors such as market demand, competition, regulation, and reimbursement policies. Therefore, you should also consider the context and trends that affect your financial situation and opportunities.

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A. Alex Yarijanian

Expert in Managed Care & Healthcare Innovation, Business Coach, and Investor
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Financial Metrics: Operating Margin: Difference between operating revenue and operating expenses. Cost per Patient: Average cost of delivering care per patient. Revenue Cycle Metrics: Days in accounts receivable, claim denial rates, etc. Return on Investment (ROI): For specific projects or initiatives.

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3 Operational efficiency

A third aspect of healthcare success is the operational efficiency of your organization. Operational efficiency can be measured by using indicators such as productivity, utilization, capacity, waste, and throughput. You can use tools such as process maps, flowcharts, dashboards, and metrics to track and improve these indicators. Operational efficiency can also be enhanced by using strategies such as lean management, quality improvement, and innovation to optimize your workflows, resources, and outcomes.

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Fred Pane

Vice President at Capstone Health Alliance
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When I was Administrator, Pharmacy Services at Lehigh Valley Health Network, we developed a proprietary balanced scorecard for acute care, addressing clinical and financial metrics, as well as Patient Satisfaction (Press Ganey). Pharmacy was tracking 30 day readmissions and avoidable admissions, before the Performance Improvement Department. We tracked compliance to CHEST, IDSA, ATS, Sepsis, and Stroke Guidelines. Financial metrics came off monthly operating reports and not only LOS decreases, but also days in AR, Cash on Hand. I had enterprise operations so all non-acute had financial metrics. In 2002 lead a meeting with a BCBS provider, which may have been the first ever Value Based Contract negotiation with a payer.

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A. Alex Yarijanian

Expert in Managed Care & Healthcare Innovation, Business Coach, and Investor
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Operational Efficiency: Average Length of Stay: The average time a patient spends in the hospital. Bed Occupancy Rate: Percentage of beds occupied over a period. Emergency Room Wait Times: Average time patients wait before receiving care. Turnaround Times: For laboratory tests, radiology reports, or other diagnostics.

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4 Organizational culture

A fourth aspect of healthcare success is the organizational culture of your organization. Organizational culture can be measured by using indicators such as employee engagement, satisfaction, retention, and performance. You can use surveys, interviews, observations, and assessments to measure and improve these indicators. Organizational culture can also be shaped by your vision, mission, values, and leadership style, as well as by the communication, collaboration, and recognition that you foster among your staff and stakeholders.

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Ronald Hirsch, MD, FACP, CHCQM, CHRI, ACPA-C

Vice President, Physician Advisory Solutions at R1 RCM, Advisory Board of American College of Physician Advisors and National Association of Healthcare Revenue Integrity, differentiator between acronyms and initialisms
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What is success in health care? No one knows. Here is what it isn't. Patient satisfaction- highly satisfied patients use more resources, and have poorer outcomes. Readmission rate - A significant proportion of readmissions are due to social determinants of health, and not poor medical care. Readmissions are a measure of the quality of the politicians in the area. Length of stay - Measured from inpatient admission to discharge. That means the patient who spends two days as observation then two days as inpatient has a length of stay of 2 days. Terrible measure. Mortality rate - all you have to do is start hospice care with the patient's final breaths and it's not a mortality. Bed occupancy- How is more sick people better?

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5 Social responsibility

A fifth aspect of healthcare success is the social responsibility of your organization. Social responsibility can be measured by using indicators such as community impact, environmental sustainability, ethical conduct, and social justice. You can use frameworks such as the triple bottom line, the balanced scorecard, or the social return on investment to measure and report these indicators. Social responsibility can also be demonstrated by your commitment to addressing the needs, challenges, and opportunities of the populations and regions that you serve and influence.

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6 Strategic alignment

A sixth aspect of healthcare success is the strategic alignment of your organization. Strategic alignment can be measured by using indicators such as goal achievement, stakeholder satisfaction, competitive advantage, and market share. You can use tools such as the SWOT analysis, the PESTEL analysis, or the Porter's five forces analysis to measure and align these indicators. Strategic alignment can also be achieved by developing and implementing a clear, coherent, and comprehensive strategic plan that guides your decisions and actions.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you measure your healthcare organization's success?

1

2

3

4

5

6

7

1 Quality of care

2 Financial performance

3 Operational efficiency

4 Organizational culture

5 Social responsibility

6 Strategic alignment

7 Here’s what else to consider

Healthcare Management

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How do you measure your healthcare organization's success?

1

2

3

4

5

6

7

1 Quality of care

2 Financial performance

3 Operational efficiency

4 Organizational culture

5 Social responsibility

6 Strategic alignment

7 Here’s what else to consider

Healthcare Management

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