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Performance Management

Healthcare KPIs - 12 KPIs You Should Be Tracking

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Overview of Healthcare KPIs

Healthcare KPIs are critical for any organization in the healthcare sector, to keep track of their business performance.

Whether you’re a public or private healthcare organization, you’ve likely been feeling the pressure of tightening budgets and keeping up with ever-evolving policies, processes, and regulations in the industry.

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These pressures have created a real emphasis for healthcare organizations to set clear business objectives and ensure they’re being achieved.

So, how do you ensure business strategic objectives are being achieved? Put simply, tracking and measurement. As they say, if you can measure it, you can improve it. In order to actually measure and track business objectives, you'll need a few KPIs.

In this post, we walk through 12 of the most common Healthcare KPIs. For each KPI we'll explain what objectives it can measure, and provide an example of what that might look like.

This article is part of our KPI examples mini-series, check it out for the full range of KPI examples.

KPI Healthcare

Healthcare KPIs are quantifiable or measurable factors that reflect upon the goals of an organization. Working without KPIs can create vagueness around performance, and comparing the progress of an organization over different time periods can become very difficult.

In other words, KPIs show the direction an organization is moving in by providing numbers. The data collected provide statistics that enable a healthcare organization to analyze its progress report over a certain period of time.

If you need a hand creating your own KPIs, check out this article where we show you 4 simple steps for writing your own great KPIs

Healthcare KPI Examples

Following is a list of KPIs from different areas of healthcare. These KPIs provide quantifiable data that enables healthcare providers to understand and improve their performance.


Average Patient Wait Time

The Average Patient Wait Time is a very useful nurse KPI example for measuring and tracking business objectives around patient satisfaction and capacity management.

Patient wait time can be calculated by finding the average amount of time a patient must wait from the moment they walk into a hospital or healthcare clinic until the time they are able to be seen by a healthcare professional.

KPI Example: Decrease average patient wait time to 10 min by 31/12/2024

Bed Occupancy Rate

The bed occupancy rate measures the proportion of hospital beds in use at any one time. Bed occupancy is a good indication of a hospital's ability to provide safe and effective treatments to patients.

Therefore, bed occupancy is a great KPI for measuring operational and capacity objectives. Once the KPI is measured and tracked, healthcare providers are able to estimate whether or not more space and beds are needed.

KPI Example: Decrease bed occupancy rates to 82% by 10/11/2024

Average Hospital Stay

Just as the name implies, this KPI tracks the average length of time patients stay in the hospital. While this metric is very useful, it's also very general - using average hospital stay as a single KPI to track all the different categories of stay in your facility won't prove to be very helpful.

The recovery from heart surgery will almost always be a longer stay than a patient who underwent cataract surgery. Instead, this KPI should be broken up and used for each category of stay. After some analysis of the results, healthcare facilities will be able to create a target length of stay for each category.

KPI Example: Maintain the average hospital stay for shoulder arthroplasty of 2 days by 31/12/24

Staff-To-Patient Ratio

This indicator measures the number of staff resources present to attend to the patients in a hospital over a certain period of time. This KPI may require different ratios for different periods of time, such as morning shift v night shift, and should be broken up accordingly.

The staff-to-patient ratio is a good indicator for business objectives that aim to improve the quality of patient care, as well as improve workforce sustainability. A higher staff-to-patient ratio implies a greater capacity to provide treatment and care to patients.

KPI Example: Increase the staff to patient ratio to 1:4 by 01/06/24

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Average Treatment Charge

The average treatment charge measures the amount of money that a hospital or healthcare facility charges each patient for its treatment. This KPI is a great indicator of how effective and efficient your hospital's treatments are.

The KPI can be either measured in terms of an individual treatment fee or in the form of an average treatment fee taken from all the patients during a certain amount of time. The average treatment charge is a good measure of business objectives relating to reducing hospital costs.

KPI Example: Reduce treatment charges of delivering a baby to $3000 by 30/06/24

Permanent Employee Wages

The cost of permanent employee wages is an extremely important KPI to measure for every healthcare provider. Human resources represent a large portion of costs for most organizations and keeping track is vital.

While employee wages are an expense to healthcare providers, the expense also comes with an anticipated benefit. Blindly working to decrease this figure may also end up decreasing the benefit it provides. Before creating your KPI for employee wages, consideration should be given to how this will impact the organization.

In order to measure this indicator, calculate the wages paid to all the full-time employed workers during a specific period of time. Permanent employee wages is a useful KPI for business objectives around business costs and budgeting.

KPI Example: Increase the budget for permanent employee wages to $2,000,000 by 30/04/24

Average Insurance Claim Processing Time and Cost

This can be calculated by finding the mean of the total time and total cash spent by a hospital on insurance claims. A low amount denotes that the hospital gets the payment faster and there are low charges on treatment fees.

KPI Example: Reduce average insurance processing time by 20% by 31/12/2024

Claims Denial Rate

The purpose of using this quantifiable indicator is to check out the efficiency of the revenue cycle of a hospital. A decreased rate shows that a hospital gives more time to taking care of its patients than utilizing time on keeping the documents or doing the paperwork.

KPI Example: Reduce claims denial rate by 15% by 31/12/2024


Training Per Department

Training per Department measures the total amount of training provided to the workers of each department, or alternatively the total amount of training possessed by the employees as a whole.

KPI Example: Increase training per department to 8 a month by 31/12/2024

Number of Mistake Events

In order to measure the effectiveness of a hospital in terms of its workers and the equipment available, this indicator is used. It counts the number of issues that can be categorized as mistakes made in a specific hospital over a certain period of time.

KPI Example: Reduce mistake events to 5 per month by 31/12/2024

Patient Confidentiality

This is a highly important indicator that measures the number of times patients' confidential or private information has been provided to an unapproved third party.

KPI Example: Reduce patient confidentiality breaches to zero by 31/12/2024

Number of Partnerships With Advocacy Groups

This indicator is used to measure the number of partnerships a hospital holds with other organizations. A high value in this indicator implies a greater positive influence from campaigns and events held by the hospital.

KPI Example: Increase partnerships to 25 by 31/12/2024


The above list shows that in the selected areas of a healthcare organization, there are some measurable indicators that can be used to keep a track of the performance of the institution and its employees.

These KPIs are long-term considerations, and their definition doesn’t change over a period of time, however, their value will keep on changing depending upon the progress rate and the goals set by the organization. 

Recommended reading: 8 Best KPI Software Tools To Hit Your Strategic Goals


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