ABSTRACT
Benchmarks are indicator values that a healthcare organization should use as a reference point to validate best practices. That is, the goal is not to achieve benchmarks, but to implement the necessary process improvements or best practices that are reflected in the benchmarks. Several ratings and financial management organizations collect and disseminate financial and utilization benchmarks that are useful for external comparison of performance indicators. The commercial American Hospital Directory provides online information for more than 7000 hospitals, based on data compiled from public data sources, such as Medicare claims, hospital cost reports, Hospital Compare, and Centers for Medicare and Medicaid Services. The Healthcare Financial Management Association developed Map Keys—Key Performance Indicators to track revenue cycle performance—for both hospitals and physician practices. Benchmarks are useful in gauging how an organization is doing, relative to best practices. The danger in using benchmarks is that they can lead to complacency. Blindly following benchmarks can cause decision makers to overlook significant problems.
