Benchmark Data and Laundry Applications

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• Benchmark Data and Laundry Applications
• Presented by
• Janice Carter Larson, CLLM

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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

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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

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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.

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Cause for Confusion

• Best Practice and National Average
• Theyre not the same thing!

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Data Sources

• Encompass National Average Database
• The Phillips Report
• New Encompass NADB Reports
• Other Textile Provider Reports

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Hospital Data Variables

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

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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

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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

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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

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How do I get a copy?

• www.phillipsandassociates.com
• or
• [phone]

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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

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Other Benchmark Tools

• Childrens Hospital NADB
• Teaching Hospital NADB
• Level One Trauma Center NADB
• Reports available from other textile
  manufacturers, commercial laundry companies or
  industry organizations
  
  
  
  
  

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Establishing a Baseline

• Where are we now?
• Where do we want to go?
  
  
  
  
  

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Common Baselines

• Pounds per Adjusted Patient Day
• Annual Clean Pounds ProcessedAnnual Adjusted
  Patient Day
• Cost per Adjusted Patient Day
• Annual Clean Pounds ProcessedAnnual Adjusted
  Patient Day
• versus
• LBS per APD x Rate/LB Processing

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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

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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!!

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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

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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

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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

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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

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• Some people change when they see the light,
  others when they feel the heat.
• Caroline Schoeder