Key Metrics to Evaluate Health Center Performance

Health centers gather extensive data, which can sometimes feel overwhelming, especially with diverse demands from grant funders (federal, state, or local), payors, and other key stakeholders. Internally, using performance indicators enables staff and board members to evaluate whether a health center is operating effectively. Key Performance Indicators (KPIs) offer valuable insights into areas such as quality, operational efficiency, and financial stability.

It is important to note that the metrics discussed below are not inclusive, and while some metrics may be uniform (such as the HRSA identified required financial measures), community health centers should determine which metrics to track on a monthly, quarterly and annual basis. 

The following KPIs identified are a few measures that health centers may use to determine viability:

  • Quality
      1. Clinical: Each year health centers track medical, dental, behavioral health and other service line metrics to determine the success of managing chronic conditions, along with the percentage of patients being screened for preventative care. These measures are collected as part of the UDS reporting requirements. Health centers should set benchmarks based on state and national standards, such as Healthy People 2030 and HEDIS measures. 
      2. Risk Management/Safety: These metrics help health centers identify and mitigate areas of risk and reduce the risk of adverse outcomes.
      3. Patient Satisfaction: These metrics measure the level of satisfaction patients receive with the healthcare received. Improving the patient’s experience can lead to becoming the provider of choice and better health outcomes.
  • Operational Efficiency
      1. No-Show:  Understanding why patients miss appointments, whether it be a financial, transportation or other barrier, can help identify the needs of our patients and whether health centers should increase transportation, adjust the sliding fee discount program or adjust the hours of operation. 
      2. Provider Productivity: Evaluating the number of patients seen by providers in various service lines helps to evaluate the need to expand services, add additional clinical support staff and determine whether revenue being generated is budgeted appropriately. 
  • Financial Health 
    1. HRSA Required Fiscal Measures: Per the reporting requirements, health centers must track the following measures: (FQHC Look-Alikes do not track Grant Cost per total patient measure) 
      1. Grant Cost per Total Patient: the amount of federal funding used per patient
      2. Total Cost per Total Patient: the cost to serve one patient
      3. Medical Cost per Medical Visit: the cost to see one patient for a medical visit. Health Centers with various service lines such as dental and behavioral health should also calculate this per service line
    2. Revenue Cycle Metrics: Metrics such as days in account receivable, days in account payable, and days cash on hand ensure that the health center is operating within the board approved budget.

By closely monitoring and analyzing these key metrics, health centers can gain valuable insights into their operations, identify areas for improvement, and enhance their ability to serve their communities effectively. 

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