Top 10 KPIs Every Home Care Provider Should Track

It’s important to choose KPIs that align with the goals you have set to realize your growth strategy. For example, setting SMART KPIs lets home care providers focus on their priorities and consistently meet key targets, such as client acquisition.

So what are SMART KPIs? In a nutshell, here’s what SMART stands for — specific, measurable, attainable, realistic, and timely.

KPIs are essential for your team as much as your business because they help visualize the roadmap to growth and improved performance. Also, tracking KPIs and rewarding your team and caregivers for achieving business goals motivates them to do more.

Here are the top 10 KPIs every home care provider should track.

Quality of Care

Most referrals come from happy, satisfied clients, so it’s crucial to set KPIs to increase the quality of care you provide.

1. Overall client satisfaction

As a home care provider, ensuring that your clients are satisfied with your services is probably already one of your top priorities. 

Following methods to officially capture and measure the overall client satisfaction may not always be straightforward, but it’s vital.

Good communication between your home care agency, your client, and their family is key to creating the transparency and engagement you need to measure this metric.

Home care software such as Smartcare lets your clients leave instant feedback about their experience. Getting feedback from your caregiver team is equally important.

Setting goals, such as increasing referral rates or response to client surveys could help you with your efforts in tracking overall client satisfaction.

2. On-time client visits

One of the ways to improve the quality of care is using KPIs to track caregiver performance, such as on-time client visits.

As a home care provider, you must ensure caregivers can securely access their schedules and their client’s/patient’s location information. Still, it’s the caregiver’s responsibility to be on time to provide exceptional care. 

At the same time, tracking client visits is necessary for compliance. For example, Electronic Visit Verification (EVV) keeps patients and caregivers safe from fraud while tracking the care provided with proof of visits.

Smartcare’s EVV tools provide a digital solution for home care providers to verify each client visit easily.

3. Number of incidents/complaints

Part of leading a home care business is dealing with occasional complications and crises. That’s why having a game plan for such scenarios is key.

Keeping track of the number of incidents and complaints over specific periods can help you determine potential causes and work on them.

For example, during busy periods, your home care business may fail to meet certain quality of care standards due to a lack of caregivers. Tracking the number of incidents or complaints and then understanding their context helps you optimize your strategy for reducing challenging situations.

Sales and Marketing

Growing your business is only possible with smart investments in your sales and marketing. KPIs are necessary to measure the success of these activities, for example:

4. Client acquisition

As a home care provider, increasing your client base is your biggest financial goal. This usually happens as a result of a good sales and marketing strategy.

Tracking client acquisition helps you understand your financial performance and decide whether to expand your workforce or attain more resources.

At the same time, tracking this metric while running advertising campaigns helps you understand the campaign performance and effectiveness of your marketing efforts.

You can also use this metric to determine the client acquisition cost per referral. Just divide the money spent on a particular referral source by the number of clients acquired to measure the referral source’s effectiveness and affordability.

Financial

Tracking incoming and outgoing payments indicates how your business is currently performing and future financial projections. It also helps you understand how competitive your prices are within the home care industry.

5. Total active clients

Accumulating as many happy clients as possible is your ultimate goal. So by tracking the number of total active clients, home care providers can analyze caregiver performance.

Analyzing trends of gaining or losing clients can help explain the reason behind those fluctuations. Was the reason related to client satisfaction, health issues, a competitor, or something else? Tracking this KPI helps reduce the loss of opportunities and minimize client turnover. 

6. Gross revenue

The gross revenue of your home care business shows how much money your services bring into the business. You can use this metric to determine your average per unit prices. You need this information to know when you need to make price changes.

You should track both your monthly revenue and annual revenue. For example, looking at your monthly revenue helps you understand the cash flow better, and your yearly revenue is important for determining gross payments, such as salaries. 

7. Business profits

Your business profits are calculated by subtracting business expenses from the gross revenue. You can track your business profits to ensure it improves over time. 

By adjusting your operations or expenses to maximize your profit, you can use some of your profits to invest in various aspects of the business. For example, your profits can be used in expanding your workforce, growing sales and marketing activities, or using digital services such as home care software.

8. Total billable hours

You need a record of the total billable hours to know how much demand you get and what percent of it you can cover. 

Tracking this metric helps you estimate the number of caregivers you require, plan caregiver schedules, and eventually increase billable hours and revenue.

For example, if you see uncovered shifts, you may need to increase the number of your caregivers, or you may optimize the hours of your services to accommodate more clients.

Human Resources

Home care providers offer human-to-human services, so they must establish a solid human resources team. In an industry where caregiver turnover rates can make or break a business, you must invest in retaining your caregivers.

9. Caregiver retention

You can only have highly satisfied clients when they are taken care of by highly satisfied caregivers. So, tracking caregiver retention and making sure your caregiver turnover rates remain low greatly impacts your home care business’s success.

You should also know your caregiver acquisition cost to compare how much it costs you to hire new caregivers vs. investments you can make to increase caregiver retention. 

10. Client vs. caregiver ratio

Another important KPI to track is your client vs. caregiver ratio. It’s important to find the optimal ratio that keeps both your caregivers and clients happy.

Requiring too much overtime from your caregivers, not considering breaks when scheduling, or overloading their schedules often leads to increased caregiver turnover, or worse, caregiver burnout. 

Keeping track of this KPI will help you to balance your caregivers’ workload to help retain them and continue providing high-quality home care services. 

Please get in touch with us to learn more about Smartcare’s business intelligence tools for tracking KPIs and improving performance, or request a free demo.