Revenue to Payroll Dollar - Multi-Pedia

Revenue Per Payroll Dollar = Net Patient Revenue/Total Payroll Dollars.

Since payroll is the primary key to mastery of Hospice finance, then the relationship between revenue and payroll costs is significant.

Measurement Average Acceptable Excellent
Revenue Per Payroll Dollar 1.4 2.50

Since payroll is typically 60-75% of a Hospice's total expense, the lower the number, the less likely your Hospice is operating within its Patient Revenues. To increase this ratio, (1) the amount of payroll dollars needs to be reduced, (2) revenue needs to be increased, or (3) a combination of both.


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