LUPA & PDGM
Cost-to-Revenue Ratio
Cost-to-Revenue Ratio compares the total cost of delivering services with the revenue.
Definition
The Cost-to-Revenue Ratio compares the total cost of delivering services with the revenue generated during a defined period. Formula: Total Operating Costs ÷ Total Revenue
Why it matters
This ratio helps leaders evaluate financial efficiency and identify opportunities for operational improvement.
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Conversations on lupa & pdgm
Episodes from Inside Home Health that put Cost-to-Revenue Ratio in operational context.
