Definitions

Question 1

This is calculated by the finance/accounting department and are used to “adjust” or convert outpatient revenues (volumes) to the equivalent inpatient units. Similar to the foodservice department converting cafeteria or catering cash into meal equivalents.

Answer 1

Adjusted discharges

Question 2

This is a conversion done by the financial department to adjust for outpatient volume.

Answer 2

adjusted patient days

Question 3

This identifies the average café sale (excluding sales tax) purchased by a patron. Also defined as average sale per transaction.

Answer 3

average sales per café customer count

Question 4

This represents the percent of cafeteria meal equivalents to the total meal/meal equivalent count.

Answer 4

cafeteria meals percent

Question 5

This is inconsistently used to describe actual cash and/or charges sales. Be sure to clarify the firm’s definition and record your statistics accordingly.

Answer 5

charges

Question 6

This is the foods expense associated with one meal.

Answer 6

food cost per meal

Question 7

This identifies the percent of total departmental operating expenses incurred in the purchase of food.

Answer 7

food cost as percent of total operating cost

Question 8

This is a more accurate form of describing all expenses associated with the departmental operation required to produce one meal or equivalent. Includes food cost, labor cost, supply cost, and other direct costs.

Answer 8

gross departmental expense or total operating expense per meal

Question 9

This represents the total salary cost (productive and nonproductive wages) to prepare one meal or equivalent. Do not include noncash benefits such as FICA, pensions, premiums, and health insurance.

Answer 9

labor cost per meal

Question 10

This is defined as all expenses associated with the departmental operation less revenue for each patient day.

Answer 10

net cost per patient day

Question 11

measures the paid time off as a percentage of total paid hours

Answer 11

nonproductive hours percent

Question 12

generally includes all other departmental expenses associated with the production of one meal or equivalent that have not already been accounted for, including but not limited to dues, subscriptions, continuing education, travel, repairs, maintenance, contracted labor, minor equipment, uniforms, rental equipment, and miscellaneous expenses.

Answer 12

other direct cost

Question 13

equals the number of inpatient meals per day, generally 3 or less in acute-care facilities. In long-term facilities this number generally equals 3 and in rehab/alcohol facilities it may be as high as 3.35. The term “patient meals” may be used as a broad definition to describe inpatient meals and all other related patient meals, such as guest trays, nourishment, and floor supplies. Clarify the definition with each benchmarking firm

Answer 13

patient meals per patient day

Question 14

not all benchmarking firms agree on the definition of “revenues” or “sales”. Care should be taken to clarify each firm’s definition. Most firms agree that actual cash received from nutrition counseling, sale of instructional materials, nutritional supplements, or any other cash-producing service are part of documental revenue. Discrepancies occur in the inclusion or exclusion of noncash departmental transfers (eg ward supplies, special functions, and charges for supplements). This book defines revenue as all cash and charge sales, including interdepartmental transfers.

Answer 14

revenue

Question 15

identifies the controllable expenses associated with services of one meal or meal equivalent. Most often associated with nonfood supply cost (paper, disposables, cleaning supplies, tableware, dishes, office supplies, menus, and computer supplies). Note: some statistical profiles include food as a supply cost. Be certain to clarify the definition.

Answer 15

supply cost per meal

Question 16

reflects all controllable expenses required for each adjusted patient day. Note: salary, food, and supplies are all direct costs; total direct cost includes all these expenses combined, in addition to other direct expenses.

Answer 16

total direct cost per adjusted patient day

Question 17

reflects all controllable expenses required to prepare one meal or equivalent

Answer 17

total direct cost per meal

Question 18

reflects all controllable expenses required for each patient day note: salary, food, and supplies are all direct costs; total direct cost includes all these expenses combined, in addition to other direct expenses

Answer 18

total direct cost per patient day

Question 19

represents the number of paid (productive and nonproductive) hours expended to produce one meal or equivalent

Answer 19

total paid hours per meal

Question 20

represents the number of worked (productive) hours used to produce one meal or equivalent

Answer 20

total worked hours per meal