Benchmark Data and Laundry Applications

Presented by

Janice Carter Larson, CLLM

Objectives Define “Benchmarking” Find out what kind of industry

data is available Learn how to use industry data to

benchmark and identify opportunities for improvement

Industry Data Reports

Provide information on linen usage for inpatient, outpatient and surgical settings

Help determine product replacement requirements

Assist laundries and hospitals to set measurable goals for a linen utilization initiative

Benchmarking Defined A process used in management in which organizations evaluate various aspects of their processes in relation to best practice usually within their own sector. This allows organizations to develop plans on how to adopt best practice and increase some aspect of performance. Benchmarking is often treated as a continuous process in which organizations continually seek to challenge their practices.

Cause for Confusion

“Best Practice” and “National Average”

They’re not the same thing!

Data Sources Encompass National Average

Database The Phillips Report New Encompass NADB Reports Other Textile Provider Reports

Hospital Data Variables

Product quality Percentage of reusable OR linen Reusable incontinent products Number of departments authorized to wear hospital provided scrubs

Encompass National Average Database

Designed for use primarily by hospitals Published every two years

Data specific to linen usage Does not contain replacement cost

information or average cost per pound Data pulled directly from computer reports,

can now be done online Data analyzed for accuracy

Data Breakdown Average pounds per APD by total

hospitals, by staffed beds, by region Average pounds per activity by

inpatient, outpatient and surgical linen Average pounds per activity by specific

department Average item usage per APD by total

hospitals Includes ranges for reference purposes

“The Phillips Report” aka the 2005 North American

Edition Comparative Operating Revenues and Expense Profile for the Healthcare Textile Maintenance Industry

Designed for use primarily by OPLs, central and commercial laundries

Published every two to three years

How do I get a copy?

www.phillipsandassociates.com

or(651)288-4950

Data Breakdown 17 Year Historical Cost Trends Average Linen Pieces and Pounds Used

by APD for Hospitals and Nursing Homes Comparative Operating Revenue and

Expense Profile Laundry Plant Textile Replacement

Factors Laundry Plant Wage and Salary Profile

Other Benchmark Tools

Children’s Hospital NADB Teaching Hospital NADB Level One Trauma Center NADB Reports available from other textile

manufacturers, commercial laundry companies or industry organizations

Establishing a Baseline

Where are we now?

Where do we want to go?

Common Baselines Pounds per Adjusted Patient Day

Annual Clean Pounds ProcessedAnnual Adjusted Patient Day

Cost per Adjusted Patient Day Annual Clean Pounds Processed

Annual Adjusted Patient Day versus

LBS per APD x Rate/LB Processing

Linen Management Software “Big Calculators” Provide data in a variety of report

formats that enable you to set your baseline and track your progress against industry benchmark data

Enable you to share information about your goals and progress with the end users or process owners

“Rational Consumption”

the right product at

the right time for

the right reason in

Linen items are consumable medical supplies designed to be used for specific purposes.

Creative use = Cost abuse!!

Benchmarking Examples United Laundry Services, HI

9 hospitals, 2 Women and Children Same product, same rate per pound

St. Joseph Health System, CA 7 hospitals in California Same product, same rate per pound

Providence Health System, CA Two hospitals in SoCal Same product, same rate per pound

Benchmarking mistakes Confusing benchmarking with participating in a survey Confusing benchmarking with research Thinking there are pre-existing benchmarks for everything Choosing a process that is too large and complex to be

manageable Choosing a topic that is too intangible and difficult to

measure Goal is misaligned or cuts across other initiatives Not establishing a baseline Not researching the best practice thoroughly Forgetting about service, delivery and customer

satisfaction

Key Points to Consider “Apples to apples” - compare your

facility to another as similar as possible

Use the data as a guide, not as an absolute

Some of the most effective benchmarking is done within a hospital or hospital system

Keys to Success Set measurable goals

Monitor progress, provide updates to participants to maintain motivation

Publish results, include cost savings

Continually review your current practice in order to identify opportunities for improvement

“Some people change when they see the

light, others when they feel the heat.” Caroline Schoeder