Gross Margin Per Episode
Gross margin per episode is the revenue an agency collects for a patient's payment period minus the direct costs of delivering that care, chiefly clinician visit costs, mileage, and supplies. It is the core unit economics metric in home health: it tells an operator whether each admission funds overhead and growth or quietly loses money.
Definition
Gross margin per episode is the revenue an agency collects for a patient's payment period minus the direct costs of delivering that care, chiefly clinician visit costs, mileage, and supplies. It is the core unit economics metric in home health: it tells an operator whether each admission funds overhead and growth or quietly loses money.
Why it matters
Gross Margin Per Episode is part of the Revenue Cycle & Billing vocabulary used across home health operations, documentation, and revenue cycle. Understanding it helps clinicians, QA leads, and administrators stay aligned on care quality and compliance.
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