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Benefits Percent

Benefits As a % of Salaries = Total Benefits/Total Salaries

This percentage represents benefit expense as a percentage of salaries, not including contract labor. Examples of benefits are health insurance, dental insurance, worker's compensation, pension and retirement plans, etc. They do not include PTO or vacation pay. Benefits in a typical Hospice run approximately 22%-25%.

Benefits in the Chart of Accounts

Many Hospices have a Chart of Accounts with "tons" of accounts for benefits. Every department or discipline has accounts for every type of benefit. We encourage a Hospice to be somewhat "anal-retentive" about breaking out personnel costs since they comprise 60-75% of a Hospice's costs. If you had benefit accounts for each, you would increase the size of your COA by hundreds of accounts. The solution is easy. Only use a master account for each type of benefit. By this, I mean you would have an expense account for:

You would then allocate benefits as a percentage of Salaries and Wages on financial statements. This is a more efficient way of tracking benefits. Here are advantages to using master accounts for benefits:

Though most accountants are anal-retentive, this is one area where it is not necessary. Also, if your auditors want you to change from this master account approach to a break-out of 200 accounts... DON'T!


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