Corporate Services Expense Ratio (CSER)

This indicator measures the percentage of the legal entity's total expenses that were spent in administrative departments such as finance and human resources. A high percentage indicates that administrative costs are a large portion of total expenses; a low percentage indicates that administrative costs are a small portion of total expenses.

A high percentage indicates that administrative costs are a large portion of total expenses; a low percentage indicates that administrative costs are a small portion of total expenses. 

Data updated:
Data availability: to (fiscal years)
Geographic coverage
Newfoundland and Labrador, Prince Edward Island, New Brunswick, Nova Scotia, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, Yukon, Northwest Territories
Reporting level
National, Province/Territory, Region, Facility
Calculation

The indicator is calculated by dividing the legal entity's administrative expenses net of recoveries (including expenses for administration, finance, human resources and communications) by total expenses net of recoveries.

The unit of analysis of this indicator is a dollar of expense. The indicator is expressed as the percentage of total expenses that are in administrative departments. The indicator is calculated by fiscal year.

Denominator

The denominator includes all expenses net of recoveries.

Numerator

The numerator includes all expenses associated with the administrative, finance, human resources and communications functional centres.

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Name

Corporate Services Expense Ratio (CSER)

Short/Other Names

Administrative Service Expense as a Percentage of Total Expense (previously called Administrative Expenses)

Description

This indicator measures the percentage of the legal entity's total expenses that were spent in administrative departments such as finance and human resources.

Rationale

The indicator can be used by legal entities to determine whether their administrative expenses should be increased or decreased relative to their total expenses.

The indicator is influenced by finance, administrative, human resources and communications expenses, in proportion to total expenses.

This indicator can be used to improve cost-efficiency.

Interpretation

A high percentage indicates that administrative costs are a large portion of total expenses; a low percentage indicates that administrative costs are a small portion of total expenses. 

HSP Framework Dimension

Efficient allocation of resources

Areas of Need

Not applicable

Targets/Benchmarks

Not applicable

Available Data Years

to

Geographic Coverage

  • Newfoundland and Labrador
  • Prince Edward Island
  • New Brunswick
  • Nova Scotia
  • Quebec
  • Ontario
  • Manitoba
  • Saskatchewan
  • Alberta
  • British Columbia
  • Yukon
  • Northwest Territories

Reporting Level/Disaggregation

  • National
  • Province/Territory
  • Region
  • Facility

Others: This indicator is calculated at the level of the legal entity and then aggregated to the regional, provincial/territorial and national levels. For Quebec, the établissement is the legal entity. For Ontario, hospitals and non-hospitals are the legal entities. For Yukon, the Yukon Hospital Corporation is the legal entity. For all other jurisdictions, the regional health authority is considered the legal entity. 

In Ontario, non-hospitals are not reported at the facility level but are included in local health integration network (LHIN) and province-level calculations. Some non-hospitals are excluded due to data quality concerns.  

Results for Manitoba and British Columbia are reported only at the provincial level due to certain limitations. 

Indicator Results

Web Tool:
Your Health System: In Depth
PDF:
Accessing Indicator Results on Your Health System: In Depth (PDF)

Update Frequency

Every year

Latest Results Update Date

Updates

Not applicable

Description

The indicator is calculated by dividing the legal entity's administrative expenses net of recoveries (including expenses for administration, finance, human resources and communications) by total expenses net of recoveries.

The unit of analysis of this indicator is a dollar of expense. The indicator is expressed as the percentage of total expenses that are in administrative departments. The indicator is calculated by fiscal year.

Type of Measurement

Percentage or proportion

Denominator

Description:

The denominator includes all expenses net of recoveries.

Inclusions:

Codes include, for all functional and accounting centres, 7* and 8*, as well as secondary financial accounts 1 2* and 3* to 9*. External recoveries are netted to reflect the organization's expenses only.

Exclusions:

Internal recoveries (except for 1 28 Sales Revenue) are netted to offset interdepartmental transfers.

Amortization — Undistributed (9 50) and Net Gain or Loss on Disposal — Undistributed (9 51)

Numerator

Description:

The numerator includes all expenses associated with the administrative, finance, human resources and communications functional centres.

Inclusions:

Codes include functional centres 7* 1 10, 7* 1 15, 7* 1 20 and 7* 1 30, as well as secondary financial accounts 1 2* and 3* to 9*. External recoveries are netted to reflect the organization's expenses only.

Exclusions:

Internal recoveries (except for 1 28 Sales Revenue) are netted to offset interdepartmental transfers.

Amortization — Undistributed (9 50) and Net Gain or Loss on Disposal — Undistributed (9 51)

Method of Adjustment

Not applicable 

Adjustment Applied

None

Geographic Assignment

Place of service

Data Sources

  • CMDB

Caveats and Limitations

The indicator is calculated at the legal entity level. For most jurisdictions, this is the health region. However, for Quebec, the établissement is the legal entity; for Ontario, hospitals and non-hospitals are the legal entities; and for Yukon, the Yukon Hospital Corporation is the legal entity. 

In Ontario, non-hospitals are not reported at the facility level but are included in LHIN and province-level calculations. Some non-hospitals are excluded due to data quality concerns.  

Results for Manitoba and British Columbia are reported only at the provincial level due to certain limitations. 

Trending Issues

Not applicable

Comments

Not applicable

References

Not applicable

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