Comparative Analytics: The use of standardized data to give organizations an objective and timely performance measurement, against their peers as well as their past.
Comparative analytics complement an organization’s internal performance management tools that answer the typical question “Are we improving or degrading our performance?” by answering the additional questions of “Is our performance in line with industry leaders?” and “Are there factors beyond our control influencing our performance?” With such benchmarks, staff can develop clinical workflows that are more efficient and productive, and can also measure and manage financial strengths and weaknesses.
However, evaluating a provider’s performance through traditional benchmarking analytics has historically presented several issues. For example, specific key performance indicators (KPIs) may be calculated differently by different organizations, preventing a true “apples to apples” comparison. Additionally, most current benchmarking methodologies rely on manual processes for gathering data, making insights obsolete before they are available to decision-makers. Finally, traditional benchmarking analytics allows leaders to compare imprecise KPIs…but doesn’t answer the question “what is the root cause of variance in the data?”
Comparative analytics accomplishes two things: 1) it establishes a useful baseline for performance along processes that are uniform enough to be compared and 2) identifies if there are macro influences beyond an organization’s control that are influencing performance. With these benchmarks, staff can develop workflows that are more efficient and productive, and financial strengths and weaknesses can be measured and managed. If payments are delayed, or claims denials from a particular payer rise, it would be helpful to know whether your organization is unique, or whether other organizations are having the same experience.
The key to a successful comparative strategy lies in achieving access to an optimal comparison data set, the technical complexity needed to build a sufficient analysis engine to synthesize the data, and simplified user tools that allow for easy identification of key insights.
Learn more about RelayAnalytics Pulse: http://pulse.relayhealth.com/
Jason William is available for speaking opportunities and you can follow him on Twitter: www.twitter.com/RH_JWilliams