Business Intelligence Blog from arcplan
14Feb/121

Business Intelligence at Hospitals: Real-World Examples of Hospital Efficiency & Quality Metrics

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As both the battalion chief of my local ambulance and rescue squad and a business intelligence consultant, you can imagine that healthcare analytics are near and dear to me. Plus, living in the Philadelphia region, it’s impossible to escape the news of numerous hospital closures every year. So at arcplan, I love working with hospitals and healthcare organizations to build reports and dashboards that track the metrics critical to their survival. All the way back in 2001, Paul Mango and Louis Shapiro of McKinsey & Company argued that hospitals are essentially a commodity business and therefore need to compete on the basis of operational efficiency. This sentiment rings true more than 10 years later, with skyrocketing medical costs, declining insurance reimbursements, and increased utilization by an aging population. Giving hospital executives (and physicians!) access to real-time data has never been more critical to hospital operations.

Hospital executives often report on financial, operational and clinical system metrics which are crucial to ongoing operations and management. The hospitals we’ve worked with often have an overarching goal to provide efficient, quality care to patients, and they need access to their existing data to make sure they are achieving that goal. Important metrics that roll up to the goal of “efficiency” include the average wait time for a hospital bed, physician productivity, nurse turnover rates and the cost per discharge. Metrics that roll up to a “quality” goal include average length of stay, re-admission rates and patient satisfaction. The only way to improve the quality and efficiency of care is to analyze current performance and identify areas for improvement.

One of arcplan’s customers, the largest private operator of healthcare facilities in the world, came to us when they were focusing on efficiency. For more than 5 years, they have used an arcplan-powered business intelligence system (with data from Oracle Essbase and Teradata) to track key metrics and make decisions that improve efficiency of care – specifically in emergency rooms. All of their ERs needed to reduce wait times, shorten lengths of stay, and avoid people leaving the ER without care and treatment. The goal became to have every ER patient seen by a doctor within 45 minutes of arrival.

So what metrics do they track to achieve this goal? Here are a few examples:

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