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Healthcare Provider Performance Benchmarks

Avasant’s Industry Economics report for healthcare providers delivers over 50 top line metrics designed to help the Chief Medical Officer and the Chief Financial Officer at major healthcare providers. The report provides metrics for hospitals and hospital networks of varying size including data around budgets, staffing, revenue cycle management, equipment utilization, and technology deployment. Complemented by data from our Business Economics (back-office spending and staffing) and Computer Economics (IT spending and staffing) studies, Avasant provides the entire c-suite the data they need.

DOWNLOAD: BY HEALTH ORGANIZATION

INTENDED AUDIENCE

This study provides key metrics and unbiased data for benchmarking your healthcare provider organization (single hospitals, hospital systems, healthcare systems). With a focus on demographic, performance, financial, staffing, revenue cycle management, compliance, and technology metrics, this study will allow Chief Medical Officers (CMOs) and Chief Financial Officers (CFOs) to achieve the following outcomes:


For the Chief Medical Officer (CMO)

The CMO can utilize this data to assess clinical quality, patient safety, and operational efficiency of care delivery.

  • Evaluate Clinical Performance & Quality KPIs: Compare key patient safety and care effectiveness metrics against industry peers to identify best practices and areas for clinical improvement.
  • Optimize Care Coordination and Flow: Benchmark metrics related to patient throughput to improve efficiency and patient experience without compromising quality.
  • Assess Compliance and Clinical Pathway Adherence: Measure adherence to standardized clinical protocols and compliance with quality reporting mandates.
  • Manage Staff Clinical Productivity: Evaluate clinical efficiency to ensure optimal resource use and physician engagement.

 For the Chief Financial Officer (CFO)

The CFO can leverage this data to benchmark financial sustainability, revenue cycle effectiveness, and overall cost structure.

  • Benchmark Financial Performance: Compare core financial health indicators against industry peers to assess profitability and sustainability.
  • Optimize Revenue Cycle Management (RCM): Evaluate the effectiveness of billing and collections to maximize cash flow and minimize loss.
  • Evaluate Cost Structure and Efficiency: Analyze spending metrics to identify opportunities for cost savings and operational streamlining.
  • Analyze Payor and Technology Adoption Trends: Understand how revenue mix impacts financial outcomes and benchmark investment in critical technology.

Joint Outcomes for CMO and CFO

Working together, the CMO and CFO can drive value-based care initiatives and strategic investment decisions.

  • Align Clinical Quality and Financial Outcomes: Identify the relationship between clinical performance and financial performance
  • Strategic Staffing and Investment Decisions: Utilize staffing metrics and demographic metrics to make informed decisions about workforce planning and capital expenditures.

KEY METRICS DESCRIPTIONS

Each chapter begins with an introduction, presenting the key findings.

Section 1: Demographics

We describe the demographics of the chapter’s survey sample. These include organization-size demographics, including organization gross revenue, number of hospitals/buildings, number of satellite facilities, number of beds, staff, and number of specialties.
We continue with financial demographics, including net patient revenue, operational budget, capital budget, personnel budget, and technology budget.
This section concludes with patient volume metrics, which include admissions per year, outpatient visits per year, ER visits per year, and telehealth classes per year.

Section 2: Basic Performance Metrics

This section provides an overview of essential performance indicators used to assess operational efficiency and workforce management in healthcare organizations. We also calculate the utilization rates of medical imaging and perioperative technologies. Together, these metrics offer a comprehensive view of how effectively healthcare facilities manage patient care delivery, optimize resource use, and maintain workforce stability. It includes the following metrics:

  • Emergency room wait time
  • Length of patient stay
  • Bed occupancy rate
  • Bed turnover time
  • Perioperative and imaging technologies utilization rates
  • Medical inventory turnover time
  • Staff overtime hours per week
  • Staff voluntary turnover
  • Time in days to hire staff
  • Contingency workers as a percentage of medical staff

Section 3: Financial Metrics

This section focuses on the economic dimensions of healthcare delivery. Financial metrics provide critical insights into how effectively organizations convert resources into value, manage costs, and maintain long-term viability. We examine measures such as revenue per bed, per patient, and per staff member, alongside cost per discharge, to assess productivity and cost efficiency. We also analyze budget allocations by category as an average share of operational spending, as well as technology investments expressed as a percentage of revenue, operating expenses, and on a per-staff basis. The section comprises the following metrics:

  • Net patient revenue per bed
  • Net patient revenue per patient
  • Net revenue per staff member
  • Revenue vs. cost per encounter
  • Budget categories as average percentage of total operational spending
  • Technology spend as a percentage of revenue
  • Technology spend as a percentage of total operational budget
  • Technology spend per staff member

Section 4: Staffing Metrics

This section provides staffing metrics and composition trends for all healthcare providers. The total head count includes clinical and nonclinical personnel, with further breakdowns by role type such as physicians, nurses, administrative staff, and support services. In addition to overall staffing numbers and percentage distributions, this section also examines the staff-to-bed ratio—a useful indicator of resource allocation and operational capacity. It includes the following metrics:

  • Total staff by type
  • Total staffing mix
  • Doctors staffing mix
  • Nurses staffing mix
  • Allied health staffing mix
  • Support personnel staffing mix
  • Staff per bed

Section 5: Revenue Cycle Management Metrics

This section focuses on financial processes that govern how healthcare organizations capture, manage, and collect revenue from patient services. Revenue cycle management (RCM) metrics provide visibility into the efficiency and accuracy of billing, claims submission, and reimbursement workflows. These are:

  • Total claims submitted
  • Distribution of claims by category
  • Submission rates for electronic claims
  • Percentage of claims seeking prior authorization
  • Percentage of fully electronic prior authorization claims
  • Prior authorization approval rate
  • Time from submission to approval
  • Claims denial rate
  • Average time to reimbursement for all claims
  • Average time to reimbursement by type
  • Length of time in accounts receivable (A/R)
  • Clean claims rate
  • Average resubmissions/amendments for unclean claims
  • Value of write-offs
  • Reasons for write-offs

Section 6: Compliance and Error Rate

This section examines key indicators that reflect the quality, safety, and regulatory adherence of healthcare organizations. Compliance and error-related metrics are essential for evaluating patient safety, operational reliability, and adherence to industry standards. It covers the following:

  • Total HIPAA breaches
  • Percentage of HIPAA breaches by tier
  • Medication error rate
  • Medication adherence rate
  • Vaccination compliance rate
  • Hospital-acquired infection rate
  • Readmission rate

Section 7: Technology and Vendor Adoption

This section explores the adoption of key technology platforms and vendor solutions across healthcare organizations. It includes data on the most commonly used Electronic Health Record (EHR) systems, the degree to which these systems are embedded within the organization (EHR system residency), and the current status of clinical and operational technologies. It includes:

  • EHR solutions in use across organizations
  • EHR system data residency
  • Current technology status for clinical and operational use

APPENDIX

The Appendix includes common terms and definitions used in our annual survey and in this study. It also includes a detailed definition for all healthcare provider spending and staffing categories. The Appendix concludes with a brief discussion of the statistics used in this study.

  • Common Terms and Definitions
  • Spending Category Definitions
  • How We Define Staffing Categories
  • Statistical Notes

CHAPTER DESCRIPTIONS

Chapter 1: Executive Summary (Free Download)

This chapter provides an overview of the key findings from the full study and describes the contents of the subsequent chapters. It also includes information on the study participants and the survey methodology.

  • Introduction
  • Key Findings
  • Overview of the Study Contents

Chapter 2: Composite Benchmarks

This chapter provides composite metrics for all of the organizations surveyed. The 51 organizations in this sample range from just under $50 million to over $115 billion in gross revenue.

Chapter 3: Single Hospital Benchmarks

Chapter 3 provides composite metrics for single hospitals surveyed. The 17 organizations in this sample range from just under $50 million to over $14 billion in gross revenue.

Chapter 4: Hospital System Benchmarks

This chapter provides composite metrics for hospital systems surveyed. The 13 organizations in this sample range from under $155 million to over $20 billion in gross revenue.

Chapter 5: Healthcare System Benchmarks

This chapter provides composite metrics for hospital systems surveyed. The 21 organizations in this sample range from under $4 billion to over $115 billion in gross revenue.

INDUSTRY ECONOMICS BENCHMARKING

Avasant Research not only publishes industry economics metrics. We also provide custom benchmarking services for clients.
Looking for expert assistance in evaluating your organization’s financial health, resource allocation, and market competitiveness? Our custom benchmarking service moves beyond simple departmental metrics to provide an in-depth assessment of your core economic performance against a proprietary database of peer healthcare systems.

Contact us for pricing and a free sample of the benchmarking deliverable.

CONTACT US

Akshay Khanna

Managing Partner, Avasant

Swapnil Bhatnagar

Partner, Avasant

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