A hospital labor benchmarking analysis compares current staffing levels to optimum levels in our proprietary database. This involves review of actual and/or budgeted workload indicators (volume statistics) and labor resources for the current fiscal year. The analysis includes discussions with department managers regarding systems and barriers to effective staffing. The manager interviews increase the accuracy of the results and manager buy-in.
AMS benchmark ranges and targets are developed through a process of function-based benchmarking, which we also call absolute benchmarking. Using this process, consultants build a target productivity range based upon the functions and responsibilities that are within a specific department. This enables an ‘apples-to-apples’ approach in which the benchmark and department productivity are all driven around the same set of responsibilities.
The typical work plan consists of:
- Meet with Senior Management: The project approach is reviewed and specific target areas are identified
- Complete AMS Benchmarking Data Collection Form: Hospital provides actual and/or budgeted workload statistics, FTEs and worked and paid hours
- Conduct on site interviews: These interviews include senior management and can include department managers
- AMS Conducts Analysis: Department-specific data is compared to optimal ranges to identify variances
- Review Preliminary Findings: Variances found are discussed and verified
- Prepare and present report: A report outlining the results for each cost center is presented
Typical initial implemented savings range from 2-4% of total labor expense. Additional labor savings can be achieved by a more detailed review of outlier cost centers through a department operational diagnostic, detailed department review, and/or workflow analysis.
The AMS Key Performance Indicator (KPI) Review, is a rapid review to identify cost reduction opportunities in labor expense through a high level, off-site data analysis of payroll and workload statistics. This analysis is an alternative to the on-site labor benchmarking process.
The targeted hours per statistic developed through the Labor Benchmark process can also be used to maintain the gains through regular monitoring in AMS’ hosted productivity monitoring system Quantify.