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BENCHMARKING

BENCHMARKING. Setting the Bar Higher and Getting Everyone to Get Over It! John Relic, MPh, CMPE President BCS Consulting. Benchmarking: The Basics!. Benchmarking Definition Applications How To Inspect/Improve How To Conduct a Benchmarking Analysis Who/What is targeted for analysis.

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BENCHMARKING

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  1. BENCHMARKING Setting the Bar Higher and Getting Everyone to Get Over It! John Relic, MPh, CMPE President BCS Consulting

  2. Benchmarking: The Basics! • Benchmarking • Definition • Applications • How To Inspect/Improve • How To Conduct a Benchmarking Analysis • Who/What is targeted for analysis. • Components of Successful Benchmarking • Sources of Benchmarking Data • Selling The Concept • Supportive Behavior • Painting the Picture

  3. I. Benchmarking: • Definition: The best solution to the cost/quality equation in the delivery of goods or services. • Applications: • Competitive analysis. • New Product. • Merger and acquisition planning. • Restructuring/Re-Engineering. • Productivity Improvement. • Goal Setting.

  4. Why Use Benchmarking? • Comparisons among structured groupings,i.e. radiologists, technicians. • Shortcut to improved productivity, reduced costs, enhanced quality. • Drive synergistic behavior. • Disputed resource allocations can be quantitatively assessed. • Statistical support for “Seat of the Pants” processes.

  5. Internal Benchmarking: • Best Demonstrated Performance: • Your Personal Best Becomes Your Benchmark:

  6. Benchmarking Internal: U-SoundBest Demonstrated Performance Month Ave # Exam/8Hr Day 3-High 3-Low January 8.5 15.8 8.5 February 11.7 14.6 9.5 March 9.5 13.8 9.9 April 13.4 Ave: 14.73 9.3 May 11.9 June 9.9 July 11.8 August 12.4 September 14.6 October 12.9 November 15.8 December 13.3 Average: 12.14

  7. Benchmarking Internal:Best Demonstrated PerformanceIndicator: Exam per 8 hour day • Resource Allocation Fluctuation: Annual Ave: 3-High 3-Low 12.14 14.73 9.3 75% 50%

  8. External Benchmarking:Best Prevailing Performance • Someone else’s standard performance becomes your benchmark. • MGMA Vendors • RBMA William and Mercer • ACR HFMA • VHA Merritt Hawkins and Assoc. • AHA MECON • Etc.

  9. Components of a Benchmarking Analysis • Data • Data • Data And more • Data

  10. Internal Select a meaningful indicator. Sample. Rethink “Industry Standard’s and what people inside your organization think! Avoid anticipation of outcomes. External Compare like functions/initiatives. Select meaningful indicators. Sample. Avoid Anticipation of outcomes. How To Inspect/Improve

  11. Internal: Measure performer’s average performance against other performer’s average. Target improvement percentage. Present opportunity to improve in graphic form-pictures/graphs. Measure-monitor-reset! External Measure performer’s average performance against external average’s. Target improvement process. Adjust percent of expected improvement. Present in picture and graphs. How To Improve

  12. Without Buy-in Nothing Accomplished! • Clear identification of targeted activity to be evaluated. • Components of successful benchmarking. • Sources of Benchmarking Data used. • Presentation of Results.

  13. Benchmarking Initiative Requires: • VISIBILITY • OBJECTIVITY • PARTICIPATION • MOTIVATION • CHANGE

  14. A Process of Implementation: • Define and Involve Key Players • Focus on Mission and Vision • Select meaningful indicators. • Develop clear plan. • Align key players. • Build trust. • Commit to change. • Pull the trigger-implement. • Make staffing changes fully and quickly. • Constant communication. • Develop long range plans for continuous improvement. • Measure-adjust-train-Measure-adjust-train.

  15. Indicator Selection: Traditional indicators alone will not work: Because: More is Not Better….. Only Better is Better!

  16. Some Key Indicators: • Hours Worked/Patient Visit. • Net Revenue/Patient Visit. • Revenue Net/Payroll Dollar • Net Revenue/Hours Worked • Net Revenue/Radiologist Worked Hour • Procedures<>RVU’s/Radiologist Worked Hour • Procedures/Technologist Worked Hour

  17. Some Business Indicators: • Billing Office Expense as a percent of Net Receipts. • Credit Balances as a percent of Annual Charges. • Net days in accounts receivable. • Percent of AR greater than 90 days. • Percent of AR that is Self Pay. • Gross Days revenue outstanding. • Net Collection percentage.

  18. Putting It Into Pictures: 100% 80% 60% 40% 20% 0% Re-engineer Realign ImprovementOpportunity Restructure Analysis 2 4 6 8 10 12 Time Months

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