Embed Size (px)
Citation preview
THE VALUE OF LOCAL BENCHMARKING
Originally presented August 2006
AGENDAHealthcare Market Resources BackgroundLocal Market BenchmarkingCurrent State of Local Market InformationDisease Adjusted Financial Benchmarks
HEALTHCARE MARKET RESOURCES BACKGROUNDHealthcare Market Resources' mission is to
provide home health agencies, hospices and related parties with the tools to better understand their local marketHome Health Market ProfilesHospice Market ProfilesReferral Source(Hospitals & SNF’s) Discharge
Information
BENCHMARK CHARACTERISTICSImportantMeasurableRelevantImpactable
BENCHMARKING IS ONLY A STEP ON THE ROAD TO IMPROVING ORGANIZATIONAL PERFORMANCE
BENCHMARKING COMPARISONS & RATIONALEAgencies with similar ownership
Facility-based or Freestanding, Non-profit versus For-Profit
Similar incentives create similar behaviorAgencies of comparable size
Similar scale implies comparable level of management resources and sophistication
Agencies in same geographyFace same challenges from environmental
factors
HEALTHCARE MARKET RESOURCES LOCAL MARKET BENCHMARKINGIncludes all agencies in a local market,
defined by countyReflects home health’s role as part of a larger
healthcare delivery systemAll agencies have same environmental factors
-Same staffing issues -Same MD practices
-Same SNF bed levels -Same demographics
-Same Medicaid policy
LOCAL MARKET PROFILESNational database of Medicare claims
Every providerEvery county
Database includes almost all data reported on UB-92
Tailor counties for each provider number within an organization
Complete package of standardized reportsCustomized reporting available
A series of customized market reports for counties defined by the customer:
1. Market Size & Agency Market Share Report*
6. Demographics Report*
2. Primary Diagnosis Report* 7. Financial Analysis Report
3. Key Indicators by Diagnosis Report
8. HHRG Scoring Domain* Report
4. Referral Source/Discharge Disposition Report*
9. Provider HHRG Analysis Report
5. Visit Activity & Revenue Impactors Report*
*County Level Report
HOME HEALTH MARKET PROFILES
MARKET SIZE AND SHARE REPORT
VISIT & REVENUE ACTIVITY REPORT
DEMOGRAPHICS REPORT
HHRG SCORING DOMAIN REPORT
FINANCIAL ANALYSIS REPORT
PROVIDER ANALYSIS
PRIMARY DIAGNOSIS REPORT
DISEASE ANALYSIS REPORT
REFERRAL SOURCE & DISCHARGE DISPOSITION REPORT
POTENTIAL LOCAL BENCHMARKSVisits/Episode Discipline Visits/Episode
Episodes/Discharge LUPA Percentage
Downcode Percentage Seasonality Index
Average Case Weight Avg Revenue/Full Episode
Visits per LUPA Episode % to Other HH Agencies
% High Acuity Episodes Avg Case Mix Unit
Visits/ Full HHRG % Frail(85 yrs old & above)
% Minority % Therapy Cases
DISEASE ADJUSTED FINANCIAL BENCHMARKSBased on assumption that clinically similar
patient populations have similar characteristics
Financial indicator performance is a combination of patient mix and operational outcomesPURPOSE: TO DETERMINE HOW MUCH
VARIATION IS DUE TO EACH FACTOR
DISEASE ADJUSTED FINANCIAL BENCHMARKSTo adjust for patient mix, multiply the
financial indicator for each clinical group of patients by the MARKET patient mix percentage
Compare result to agency’s performance on given indicator and then see how much can be attributed to patient mix
EXAMPLE
KEY QUESTIONSIs local market benchmarking relevant for
your organization?Does local market benchmarking provide a
meaningful comparison versus other benchmarking approaches?
Does the lack of a dialogue partner diminish the value of local market benchmarking?
CONTACT INFORMATIONRich Chesney
President, Healthcare Market Resources
215.657.7373
215.657.0395(f)
www.healthmr.com
