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 1.5 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.

Multi-Pedia

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 Costs PD Indirect Labor Marketing Incentive Median Length of Stay Mileage Rate Net Operational Income NPR% Net Operational Income PPD 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