The Benefits of Tracking 12-Month Rolling Averages for Key Metrics in Homecare
Tracking performance through key metrics in homecare is essential for consistent growth and quality care. One simple, yet effective method for monitoring and understanding these metrics is the use of 12-month rolling averages. This approach provides a comprehensive view of performance trends over time, allowing homecare agencies to make more informed decisions and better strategic adjustments. This article will dive into the benefits of tracking 12-month rolling averages across some important key metrics, including sales, recruitment and retention, revenue, clinical outcomes, and compliance.
Understanding 12-Month Rolling Averages
A 12-month rolling average is a calculation that consistently updates to reflect the average of the previous 12 months. Unlike monthly metrics that fluctuate due to seasonality or short-term anomalies, rolling averages smooth out the variations, painting a clearer picture of long-term performance. Below are a few examples of how this tracking can benefit your agency.
Sales Metrics
Example: Client Acquisition Rate
Tracking the client acquisition rate using a 12-month rolling average helps homecare agencies understand the effectiveness of their marketing and outreach efforts. For instance, if a homecare agency aims to acquire 20 new clients per month, a sudden spike or drop in a single month might not accurately reflect the overall trend. By using a rolling average, the agency can better identify patterns and the impact of their marketing strategies.
Benefits:
- Stability and Trend Analysis: Rolling averages smooth out monthly spikes and dips, allowing for a more stable and accurate trend analysis.
- Informed Decision-Making: Agencies can identify long-term trends and adjust their marketing strategies accordingly.
- Performance Benchmarking: Consistent tracking enables the agency to benchmark performance and set realistic goals.
Recruitment and Retention Metrics
Example: Staff Turnover Rate
Staff turnover is a big issue in the homecare industry. Tracking turnover rates with a 12-month rolling average provides insights into trends and the effectiveness of your retention strategies. For instance, if the turnover rate spikes in a particular month due to seasonal or other temporary issues, the rolling average helps remove the noise and provides a clearer long-term picture.
Benefits:
- Long-Term Insights: Understand the true impact of retention strategies over time rather than reacting to fluctuations.
- Identify Patterns: Recognize patterns and seasonal trends in staff turnover to better proactively address potential issues.
- Strategic Planning: Use the insights to plan targeted interventions and retention programs, improving overall staff satisfaction and stability.
Example: Recruitment Success Rate
The success rate of recruitment efforts can be better understood through rolling averages. If your agency hires an average of 5 new caregivers per month, but some months see much higher or lower numbers, the rolling average will highlight the overall impact of the recruitment campaigns over the year.
Benefits:
- Campaign Effectiveness: Assess the effectiveness of various recruitment campaigns and refine strategies for better results.
- Resource Allocation: Allocate recruitment resources more efficiently based on long-term trends rather than short-term needs.
- Performance Measurement: Measure the impact of recruitment efforts against established goals.
Revenue Metrics
Example: Monthly Revenue
Revenue fluctuations are common in the homecare industry due to factors like client turnover, death, seasonal demand, and billing cycles. Tracking monthly revenue using a 12-month rolling average will help you better understand their financial health and growth trajectory. For example, an agency that wants to increase its monthly revenue from $100,000 to $120,000 can track the rolling average to see if they are on the right path.
Benefits:
- Financial Stability: Get a more stable view of financial performance, reducing the impact of short-term volatility.
- Trend Identification: Identifying long-term revenue trends allows you to make strategic adjustments to pricing, services offered, or client acquisition strategies.
- Forecasting: Use rolling averages for more accurate financial forecasting and budgeting.
Clinical and Compliance Metrics
Example: Hospital Readmission Rates
Hospital readmission rates are a critical clinical metric for homecare agencies, directly impacting client health outcomes and, at times, reimbursement rates. Tracking this metric with a 12-month rolling average helps identify trends and the effectiveness of care management strategies. For instance, if the goal is to reduce readmission rates from 15% to 10%, the rolling average can show whether interventions are working.
Benefits:
- Quality of Care: Monitor the effectiveness of care strategies and identify areas for improvement.
- Regulatory Compliance: Ensure compliance with healthcare regulations and standards by tracking long-term trends.
- Performance Improvement: Use insights to implement targeted quality improvement plans.
At the end of the day, tracking 12-month rolling averages for key metrics in homecare provides a number benefits, including better trend analysis, informed decision-making, and strategic planning. By smoothing out fluctuations, rolling averages offer a more accurate and comprehensive view of the performance across sales, recruitment and retention, revenue, clinical outcomes, and compliance. Homecare agencies that adopt this approach will be generally better equipped to identify trends, make more data-driven decisions, and continuously improve their services, ultimately leading to better client outcomes and business growth.
At Briones Consulting Group, we specialize in helping homecare agencies implement effective growth strategies to achieve their goals. By leveraging the power of rolling averages and other advanced strategies, we can help your agency thrive in an increasingly competitive landscape. Book your free Discovery Call Today!
