FTEs per Adjusted Discharge
Why it Matters, What’s the Right Range & Insights
FTEs per Adjusted Discharge is a classic measure of overall labor productivity.
- Labor is considered within management’s control, so it’s a useful window into labor cost management
- Importantly, as a general observation…facilities with high FTE’s/AD levels (90%) generate about 50% less EBITDA margin at all hospital types
- Naturally there’s more to consider; skill mix, tenure, wage packages, benefits; as a key driver of labor performance—this is a big one!
Looking at this metric at a national level, facility by facility…for this or any of 850+ operating and safety metrics in Franklin:BI is easy.
What we see is that remarkably:
- Investor-owned facilities are ~30% more productive than government facilities and ~15% better than Not-for-Profit’s
- And they are better at every size class…small CAH’s to 400+ beds
- The best 10% across all ownership classes are very similar
- All ownership & size are trending down with not-for-profits improving faster than government or investor-owned facilities
Franklin:BI curates virtually all healthcare provider data for every year published and ties it together contextually.
Understand peers and competitors like never before…all at the speed of thought.