Benchmarking for the Future of Home Health Care
At the recent 2020 Financial Management Conference, NAHC hosted a session on New PDGM Benchmarks and Trends, discussing how the new payment model has impacted the home health industry since its implementation. The first section of this session focused on the importance of tracking Patient-Driven Groupings Model (PDGM) Benchmarks and how to use that information to assess your PDGM data since implementation.
So, what is benchmarking?
Benchmarking is the process of comparing your agency, its operations or processes, against other agencies in your industry, or the broader marketplace. This method can be applied to specific products, processes, functions, approaches to business, or big industry initiatives like PDGM.
Commonly, you’d measure time, quality, cost, effectiveness, and customer satisfaction. The purpose of benchmarking for your organization is to see how you measure up to other agencies in the industry and ultimately, to improve your operations, reduce costs, increase profits, and strengthen customer satisfaction and loyalty.
For the Home Health industry and PDGM specifically, common benchmarks will be time and productivity standards. For example, an agency would want to monitor how many visits are completed each day and how that compares to other agencies.
Why are benchmarks important?
Sometimes when assessing a situation, you don’t have the processes in place to make data-driven decisions, and in that case, the decisions being made may not support your overall goals. With benchmarks in place, you are using quality data to make the best decision for the financial health of your agency.
For PDGM, benchmarking is a great way to measure how your agency is performing, uncover areas where you are doing particularly well and those you need to improve on going forward. These metrics provide the insights you need to make data-driven decisions and create goals.
Be sure you know which benchmarks are applicable for your organization, and which you can ignore thanks to conflicting factors such as location, EMR, or hospital base.
Are Benchmarks and KPIs the same?
While they are similar, they are not the same. Benchmarks are reference points to compare your performance with that of others and KPIs help you chart your progress against your agency’s strategic goals. If you are interested in learning more about KPIs, keep an eye out for our next blog in this series that will focus on the second part of this session, KPIs in Home Health Care.
September 14, 2020