5 Ways to Choose a Peer For Your Hospital
Comparative Benchmarking is crucial to any business. Comparative reference points give you a place to start measuring your success, as well as goals to reach for in the future. You can compare your hospital’s success against your own past, of course, but that won’t tell you if you’re getting left behind by your competition. Benchmarking helps answer important questions like how am I doing in my industry, and am I keeping up with my competitors?
To set your benchmarking you must first choose a peer or peers, which can be difficult. Of course, no one can really compare to your facility, but we can get as close as possible.
The best place to start is your neighbors. Even if the hospitals around you are a different size or have a different specialty, you still compete with them for services. You’ll likely compete with them more as federal and state legislatures expand pricing transparency. If a patient investigates prices, they’re most likely to start locally.
If your peer is struggling in the same areas, you may not need to make cuts to remain competitive. On the other hand, you may discover a competitive edge. You may also want to widen your search to state or regional competitors.
If your numbers line up closely to your local competitors, you may miss growth potential. Sometimes it’s best to step back and analyze how the country is growing and changing.
By Bed Size
You can also look at different parameters nationally. Although these hospitals are governed by different legislation and population health, their comparable size means they will have similar resource management issues. There is a lot you can learn by comparing their data with your own.
Net Patient Revenue
This metric is used to assess relative payment levels for both inpatient and outpatient hospitals. You can evaluate average payment per patient encounter, allowing you to analyze data in greater detail. This metric can give you a more accurate measurement to compare your hospital with others. We talk more about Net Patient Revenue here.
All of these measurements can help you choose a peer, but taking several into consideration can help you choose an accurate peer. Of course, our consultants can also guide you to the most accurate comparison.