Operational excellence
6 min read

How to evaluate the performance of a healthcare service?

Published on
May 21, 2024

How to Evaluate and Improve Healthcare Performance in 2025

Evaluating the performance of your healthcare service can be complex—but it’s not impossible. The key lies in knowing which performance indicators to track and understanding how to improve them. In this guide, we explore what healthcare performance truly means, which KPIs matter most, and how to implement a continuous improvement program that delivers real results.

What Is Healthcare Performance?

Healthcare performance refers to the effectiveness, quality, and sustainability of care delivery. It includes a variety of dimensions that collectively determine whether a healthcare service meets its clinical, operational, and patient-centered goals.

Key Performance Indicators in Healthcare

1. Clinical Effectiveness ✅

Measures how well healthcare services achieve desired health outcomes using evidence-based practices.

Metrics to track:

  • Recovery rates
  • Mortality rates
  • Treatment protocol success

2. Patient Safety 🩺

Ensures patients receive care without suffering preventable harm.

Key indicators:

  • Hospital-acquired infection rates
  • Medication errors
  • Surgical complication rates

3. Patient Experience 💬

Reflects the satisfaction and perceptions of patients throughout their care journey.

How to measure:

  • Patient satisfaction surveys
  • Communication quality
  • Responsiveness and emotional support

4. Operational Efficiency 📊

Assesses how well resources are used to deliver care efficiently and without waste.

Trackable KPIs:

  • Average wait times
  • Bed occupancy rates
  • Cost per patient

5. Equity of Care 🤝

Focuses on fair and equal access to high-quality care for all patients.

Indicators include:

  • Disparities in outcomes across demographics
  • Geographic or socioeconomic gaps in care

6. Financial Sustainability 💸

Balances operating costs with available funding to ensure long-term viability.

Monitor:

  • Budget adherence
  • Cost per treatment
  • Overall financial health

4 KPIs Every Healthcare Organization Should Track

1. Patient Satisfaction Score (PSS)

Higher satisfaction often correlates with better outcomes and improved care delivery.

2. Hospital Readmission Rate

Measures the percentage of patients readmitted within 30 days—lower is better.

3. Average Length of Stay (ALOS)

Assesses care efficiency. Shorter stays = higher efficiency (as long as quality is maintained).

4. Cost per Patient

Crucial for tracking financial health while maintaining quality standards.

Implementing a Continuous Improvement Program in Healthcare

To improve healthcare performance, a structured continuous improvement program is essential. Here’s how:

1. Set Clear Goals 🎯

Align with your hospital’s mission and ensure leadership commitment.

2. Build a Cross-Functional Team 👥

Involve clinical, administrative, and support roles to foster ownership and accountability.

3. Adopt a Methodology 📐

Use proven frameworks like Lean, Six Sigma, or PDCA (Plan-Do-Check-Act).

4. Train Your Teams 📚

Provide staff-wide training on tools, techniques, and change management.

5. Gather Data and Feedback 📈

Track baseline performance metrics and listen to frontline and patient feedback.

6. Prioritize Projects 🔍

Focus on initiatives with high impact and feasibility. Allocate appropriate resources.

7. Pilot, Then Scale 🚀

Test improvements on a small scale. Adjust before rolling out organization-wide.

8. Define KPIs and Track Progress 📊

Use clear indicators (like PSS or ALOS) to measure success. Regularly review and refine.

9. Empower All Staff 💡

Encourage daily contributions and recognize those who drive improvement.

10. Sustain and Standardize ✅

Once validated, standardize new processes and maintain a loop for continuous learning.

Conclusion: Performance Is a Journey, Not a Destination

Improving healthcare performance is a continuous journey involving leadership, teamwork, and data-driven strategies. By tracking key metrics and fostering a culture of improvement, organizations can deliver better outcomes, increase satisfaction, and ensure long-term sustainability.

Bonus Tip 💬

Did you know Bee’z Consulting helps healthcare institutions every year overcome performance and change-related challenges?

📞 Contact us today to learn how we can support your transformation.

Also read: 5 Key Levers a Change Consultant Can Activate in Healthcare 🚀

Silvina Layani

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