top of page

Revenue Per Available Bed (RevPAR)

Healthcare KPIs

Comprehensive Metric Info

Revenue Per Available Bed (RevPAR) in Healthcare

Revenue Per Available Bed (RevPAR) is a crucial Key Performance Indicator (KPI) in the healthcare industry, particularly for hospitals and other inpatient facilities. It measures the revenue generated for each available bed, regardless of whether that bed is occupied. This KPI provides insights into the efficiency of bed utilization and revenue generation.

Data Requirements

To accurately calculate RevPAR, you need the following data:

Specific Fields and Metrics:

  • Total Revenue:

    This is the total revenue generated from inpatient services within a specific period (e.g., daily, monthly, annually). This includes revenue from room charges, medical procedures, and other services provided to inpatients.

  • Available Beds:

    This is the total number of beds available for patient use within the same period. This number should reflect the actual capacity of the facility, not just the number of beds that are occupied.

  • Time Period:

    The specific time frame for which you are calculating RevPAR (e.g., daily, weekly, monthly, quarterly, annually).

Data Sources:

  • Hospital Information System (HIS):

    This is the primary source for patient data, including admission and discharge dates, room assignments, and charges for services.

  • Financial Systems:

    These systems track revenue generated from various sources, including inpatient services.

  • Bed Management Systems:

    These systems track the number of available beds and their status (occupied, vacant, under maintenance).

Calculation Methodology

RevPAR is calculated by dividing the total revenue generated from inpatient services by the total number of available beds during a specific period.

Formula:

RevPAR = Total Inpatient Revenue / Total Available Beds

Step-by-Step Calculation:

  1. Determine the Time Period:

    Decide the period for which you want to calculate RevPAR (e.g., monthly).

  2. Collect Total Inpatient Revenue:

    Gather the total revenue generated from inpatient services during the chosen period. For example, let's say the total inpatient revenue for a month is $500,000.

  3. Collect Total Available Beds:

    Determine the total number of available beds during the same period. For example, let's say the hospital has 200 available beds.

  4. Calculate RevPAR:

    Divide the total inpatient revenue by the total available beds. In our example: $500,000 / 200 = $2,500.

Example:

If a hospital generates $500,000 in inpatient revenue in a month and has 200 available beds, the RevPAR for that month is $2,500.

Application of Analytics Model

An AI-powered analytics platform like 'Analytics Model' can significantly enhance the calculation and analysis of RevPAR. Here's how:

Real-Time Querying:

  • Users can use free text queries to extract the necessary data from various sources (HIS, financial systems, bed management systems) in real-time. For example, a user could query: "Show me the total inpatient revenue and available beds for the last month.

  • The platform can automatically identify the relevant fields and metrics from the query and retrieve the data.

Automated Insights:

  • 'Analytics Model' can automatically calculate RevPAR based on the retrieved data.

  • The platform can provide automated insights, such as identifying trends in RevPAR over time, comparing RevPAR across different departments or units, and highlighting potential areas for improvement.

  • For example, the platform might identify a decrease in RevPAR in a specific unit and suggest investigating the reasons behind it.

Visualization Capabilities:

  • The platform can visualize RevPAR data through charts and graphs, making it easier to understand trends and patterns.

  • Users can customize visualizations to focus on specific aspects of the data, such as comparing RevPAR across different time periods or departments.

  • For example, a user could create a line chart showing the trend of RevPAR over the past year.

Business Value

RevPAR is a valuable KPI for healthcare facilities because it provides insights into:

Bed Utilization Efficiency:

  • A higher RevPAR indicates that the facility is effectively utilizing its available beds to generate revenue.

  • A lower RevPAR may indicate underutilization of beds or issues with revenue generation.

Revenue Management:

  • RevPAR helps in identifying areas where revenue can be improved, such as optimizing bed occupancy rates, adjusting pricing strategies, or improving service offerings.

  • By tracking RevPAR, hospitals can make data-driven decisions to maximize revenue.

Performance Benchmarking:

  • RevPAR can be used to benchmark performance against other facilities or industry standards.

  • This allows hospitals to identify areas where they are performing well and areas where they need to improve.

Strategic Decision-Making:

  • RevPAR data can inform strategic decisions related to capacity planning, resource allocation, and service development.

  • For example, if a hospital consistently has a high RevPAR, it may consider expanding its capacity.

In conclusion, RevPAR is a critical KPI for healthcare facilities. By leveraging an AI-powered analytics platform like 'Analytics Model,' hospitals can efficiently calculate, analyze, and visualize RevPAR data, leading to better decision-making and improved business outcomes.

bottom of page