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PIE, Inc. Benchmarking Reports

Medical practices are under intense pressure to optimize their business results.  It’s not always easy to figure out where there’s room for improvement and how much improvement is possible.  Management science has clearly established that a key to improving business performance is quantifying and monitoring business processes and output.  PIE, Inc.’s Benchmarking Reports are exactly the tool a medical practice needs to identify and quantify opportunities to improve business practices.

Benchmarking Reports are customized, geographically focused, and specialty-specific.  The report compares each medical group with at least three peer group practices.  This cohort of similar medical groups work with PIE, Inc. to define exactly which metrics to benchmark.  PIE, Inc. coordinates with each group to collect and verify accurate data.  Finally, PIE, Inc. prepares a report for each group contrasting that group with the blended data of the cohort groups.

Frequently Asked Questions about Benchmarking Reports

Medical practices are under intense pressure to optimize their business results.  It’s not always easy to figure out where there’s room for improvement and how much improvement is possible.  Management science has clearly established that a key to improving business performance is quantifying and monitoring business processes and output.  PIE, Inc.’s Benchmarking Reports are exactly the tool a medical practice needs to identify and quantify opportunities to improve business practices.

How is a cohort established?

A cohort consists of at least four medical practices that are similar to each other (for example, they practice in the same area of medical specialty, they practice in the same geographic region).  Frequently, administrators of groups interested in establishing a cohort suggest other groups with which they’d like their group compared.  When a sufficient number of medical practices agree to participate as a cohort, the benchmarking process begins.

What information is benchmarked?

The exact information to be benchmarked is customized by PIE, Inc. based on input from the cohort of medical groups.  Differences in benchmark standards reflect differences in medical specialties, geography, group size, payer mix and other factors.  Customizing benchmarks in this way is why Benchmarking Reports are so valuable – as contrasted with the many published surveys that report averages across dissimilar and non-comparable group practices.

In general, PIE, Inc. Benchmarking Reports quantify metrics in three major categories:

1. Financial Measures.  The ultimate financial test for most medical groups is how much income is available to be distributed to physicians (although some groups may have different goals, such as contributions to a not-for-profit reserve).  A mathematical formula that describes the finances of most medical groups looks like this:

= Physician income

+ (Physician Productivity X Reimbursement)

+ Other Revenue Sources

– Expenses

By looking at each factor with sufficient detail, groups are able to identify exactly where their performance excels – and where improvement is possible.

2. Risk Measures.  In addition to financial performance, risk should be quantified.  Metrics may be developed that consider such factors as HIPPA compliance, insurance coverage, risk management, and financial controls.
3. Qualitative Measures.  Many specialties are developing data that are indicative of the quality of the care they provide.  These metrics may be clinical outcomes, process measures, or quality proxies (e.g., employee turnover rates, education and training).

How is confidential information protected?

PIE, Inc. maintains all information collected on a firewall-protected computer, in password protected files when appropriate.  Each Benchmarking Report is individually prepared showing only the client medical group’s data in comparison to a blended summary of all other data in the cohort.  Each individually prepared Benchmarking Report is released only to the applicable client medical group. 

How much does a Benchmarking Report cost?

The cost of a Benchmarking Report can range anywhere from several hundred dollars to several thousand dollars per medical group, depending on such factors as the complexity of the metrics and the role of PIE, Inc. in collecting and verifying data submitted by each group.  Because the exact cost is usually unknown until the report has been completed, PIE, Inc. offers an extraordinary guarantee on all of our Benchmarking Reports:  If a medical group does not feel that the value of its PIE, Inc. Benchmarking Report is more than its invoiced cost, the medical group at its sole discretion and with no questions asked may pay only the amount equal to its perceived value of the report.

How do we get started?

The process has six steps:

1. Establish a Cohort.  A minimum of four groups must commit to participate in order for the process to proceed.
2. Refine Metrics.  Provide comments and suggestions about the proposed survey and benchmark metrics.
3. Submit Data.  Submit survey data to PIE, Inc. (and/or have PIE, Inc. visit your offices to collect the necessary information).
4. Verify Accuracy.  Review the draft PIE, Inc. Benchmarking Report to verify its accuracy.
5. Analyze.  Utilizing the information in the Benchmarking Report facilitates continuous performance improvement.
6. Repeat Periodically.  Usually, groups will want to repeat this process annually to measure their progress and refocus on new areas of improvement.

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