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Direct Patient Related Expenses NPR

Patient-Related % of Net Revenue = Total Patient-Related Costs divided by the Net Patient Revenue for the period

This is one of the three major categories of cost in Hospice.

Patient-Related Costs - Costs such as Medications, Medical Supplies, Therapies, DME, etc. Sometimes they are referred to as Ancillary Costs. Other Patient-Related costs are: Ambulance, Bio-Hazardous Waste, Clinical Mobile Phones, Clinical Pagers, Lab, Outpatient, Mileage, etc.

Hospice Homecare:

Cost Category Average Acceptable Excellent
Total Patient-Related 18% 16%

Inpatient Unit:

Cost Category Average Acceptable
Total Patient-Related 14%

Many people equate high cost with high quality. This is flawed thinking. Just because you spend 25% of your Net Patient Revenue on medications does NOT mean that patients are getting better care. It simply means that your Hospice is wasting money. The SAME outcome could be achieved at two-thirds LESS cost. The same lesson applies to Direct Labor as well as to other Patient-Related costs.

MVI encourages the use of Percentages of Net Patient Revenue (NPR %) rather than Patient-Day costs for Hospice financial measurement. This deviates from traditional Hospice practice.

For more detail on what Percentages of Net Patient Revenue is, and why/how a Hospice should use it rather than Patient-Day costs, click here.


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