Direct Labor % of All Labor - Multi-Pedia

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% 70% 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.

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