Developing metrics for unit economics
To enhance our comprehension of the unit economic metrics, let us conceptualize the unit metrics for a healthcare organization. However, it should be noted that collecting, cleaning, and modeling data is beyond the scope of this book due to the sheer complexity and data regulation of healthcare organizations.
Cost per patient encounter
Cost per patient encounter (CPE) is a KPI used to measure the cost of providing healthcare services for each patient encounter in a healthcare organization.
To calculate the CPE, healthcare organizations need to identify all the costs associated with providing care to a patient during a single encounter. This may include costs related to cloud resources, such as storage, compute, and network usage, as well as other costs such as the facility, labor, equipment, and supplies.
Once these costs have been identified, the total cost can be divided by the number of patient encounters to calculate the CPE. For...
