Key Performance Indicators in Health Care: Analysis and Application at Harris Memorial Hospital
Overview
This paper examines key performance indicators (KPIs) used in health care facilities to monitor and optimize organizational performance. It analyzes the five types of KPIs—input, process, output, outcome, and efficiency—and applies this framework to Harris Memorial Hospital, identifying misaligned KPIs in profits, liquidity, debt expense, and physical facilities while discussing how well-designed indicators enable performance measurement and benchmarking.
What this coursework covers
- Definition and purpose of KPIs in company performance measurement and strategy
- Five types of KPIs in health care: input, process, output, outcome, and efficiency indicators
- Analysis of Harris Memorial Hospital's financial KPIs including profit, liquidity, debt expense, and capital position
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SUBECT: Key Performance Indicator (KPIs)
Key Performance Indicator (KPIs) in Health Care
Key performance indicators are quantifiable measurements that are used to measure the overall performance of a company. These indicators measure a company’s success and measure industry peers, values, objectives, and targets. The KPIs determine the finances, strategies, and operation of a company, comparing them to other companies within the same sector. The indicators aim to provide progress of objectives that leads to achieving the desired result, measuring strategies used to make better decisions, and tracking efficiency, personnel performance, economics, and governance. According to the dashboard of Harris Memorial Hospital, the KPIs that are out of alignment are profits, liquidity, debt expense, and age of physical facilities. There are five types of KPIs used in health care: input, process, outputs, outcomes, and efficiency.
The input indicators of Harris Memorial Hospital measures human and financial resources after being devoted to a certain program; the resources include the number of beds, caseworkers, vaccines purchased, supplies, equipment, personnel, and buildings. Process indicators measure consistency, the order of activities being carried out, and service recipients such as stock wastage and fill rates. Output indicators of a health care facility measure the quantity and quality of goods and services provided, while outcome KPIs measures the results attained from the goods and services produced. The efficiency indicators measure the efficiency and effectiveness of resources that produce outputs.