I am going to be presenting a number of possible metrics to measure performance efficiency, PM effectiveness, and other dimensions of an HTM program. All may not be completely thought out, but are presented as food for thought. If they fit, use them, develop them, try them on for size. If you try one of these metrics (or if you are already using it), how about giving me some feedback about its usefulness or lack thereof?
Outsourced Ratio is a very simple calculation. It is the dollar value of equipment that is maintained by Outside labor resources (contracts) divided by the dollar total value of equipment. Let’s try some examples:
Ex A. Total inventory = $1M, Service Contracts = $6M, Out Ratio = 6/10 x 100 = 66.7%
Ex B. Total Inventory = $5M, Service Contracts = $2M, Out Ratio = 2/5 x 100 = 40%
Ex C. Total Inventory = $27M, Service Contracts = $3M, Out Ratio = 3/27 x 100 = 11.1%
The lower the Out Ratio, the better. This reflects that fewer contracts generally are better for the hospital.
Out Ratio can be calculated another way. After the year is over, the actual dollars paid for contracts PLUS the actual dollars paid for all outside labor (time and materials) can be added to give a true Out Ratio. This will be higher than the examples in A, B or C because we will be including instances where we have intentionally cancelled contracts and intend to utilize time and materials service for repair activities. After-the-fact is the only way to capture them.