CALL: 772-569-9811

Average Length of Stay

Average Length of Stay (Terminated Patients) = Total patient-days for terminated patients/ Number of terminated patients.

Measurement Average Acceptable Excellent
Average Length of Stay (Terminated) 64 ??

You want EVERY patient -- whether they live one minute or one hour -- for CAP purposes. You want Hospice Homecare Average Length of Stay (ALOS) as high as possible without exceeding CAP.

ALOS, like most measurements, has its flaws and should be looked at suspiciously. First, does the measurement number include the Inpatient Unit? This will skew overall Hospice numbers downward. (Low ALOS in the Inpatient Unit itself isn't a bad thing). Second, ALOS as most Hospices compute it, only counts terminated patients via death or discharge. Therefore, some patients will NEVER be included in the calculation! It can be a dangerous measurement to rely on and it has misguided many Hospices into millions of dollars in CAP paybacks.

A better indication that you may be close to the Aggregate CAP is to calculate the Median LOS on LIVING patients...NOT terminated patients. If your Hospice is close to 170 days, you're very close to trouble. ALOS based on terminated patients is of no value here because the patients driving the CAP are not included in the calculation! Think about it.

Increase Average Length of Stay (ALOS)

Increasing ALOS obviously increases ADC as people are on the program longer. This area demands much more attention than it gets. Here are some observations:


ADC Average Length of Stay Benefits Percent Caseload Expectations Computed Caseloads Crisis Care Percent Served Days Cash on Hand Days in AP Days in AR Debt to Equity Development to Return Ratio Development Signature Programs Direct Labor % of All Labor Direct Labor NPR Direct Labor PD Direct Patient Related Expenses NPR Direct Patient Related Expenses PD Facility Mix Percentage Facility Related Facility Team Patient Days Percent Indirect Labor Marketing Incentive Median Length of Stay Mileage Rate Net Operational Income Net Revenue PD Operational Costs Organizational Net Income % of Hospice Homecare Net Revenue Revenue to Payroll Dollar Segment Indirect Percent Net Revenue Segment Net Income The Role of Financial Reserves Total Indirect Volunteer Level of Activity What is Net Patient Revenue What is The Model