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Direct Labor % of All Labor

Direct Labor as % of All Labor = Direct Labor / Total Operational Labor

This segregates all labor between Direct and Indirect and gives an indication if a Hospice is too heavy in either area. Ideally a Hospice might run 70/30% (Direct/Indirect). 65/35% is average. 60/40% is usually a sign of trouble, but may be OK depending on other factors.

Measurement Average Acceptable Excellent
Direct Labor as % of All Labor 65% 72%

Direct Labor - Labor expense that is directly involved with the provision of care such as RNs, LPNs, Hospice Aides, SWs, Chaplains and visiting physicians. It does NOT include supervisors or managers even if they perform occasional visits. Bereavement, Volunteer, Triage, Admissions and On-Call areas are also considered Direct Labor. The staff of these areas provides direct care. All other labor costs are considered Indirect Labor.


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