The GAAP requires two different performance measures for each kind of healthcare organization. Net Income for not-for-profit organizations and earnings per share for-profit organizations. The ALOS measures how long patients stay in the hospital on average. Since a high percentage of hospital patients either reimburse the hospital per case or have a capitated arrangement, low ALOS's hold down costs and is the best practice. The occupancy rate measures capacity, or the percentage of the hospital that is being used. greater values are preferred in occupancy rate unless a large portion of the hospital's business is represented by capitation agreements. This is how a hospital organization can know if they are making a profit or not