Cost Quality Benchmarking – Measuring the Value Equation

The purpose of the cost quality matrix analysis is to compare the cost and quality of applications to quickly identify strengths and weaknesses. Below is an example analysis for a sampling of clinical applications.

• The applications in the green quadrant are those that benchmark with the lowest cost per key business volume and also benchmark with the highest comparative application satisfaction and quality scores.
• The applications in the red quadrant have the lowest application satisfaction and quality scores and the highest comparative costs. These application would need improvement from a cost and quality perspective.
• The applications in the orange quadrant have the lowest application satisfaction and quality scores and the lowest comparative costs. These applications would need improvement from a satisfaction and quality perspective
• The applications in the yellow quadrant have the highest application satisfaction and quality scores and the highest comparative costs. The applications would need improvement from a cost perspective.

In order to address the value equation there maybe applications that are worth significant investment to obtain the highest quality and satisfaction because of their impact on the quality of care and outcomes such as electronic health records and computerized physician order entry. There may be applications that have minimal financial impact and are not worth the investment to obtain high quality and satisfaction scores because they have minimal impact on the organization such as accounts payable.

The TBS cost quality matrix analysis presents comparative benchmarks and therefore is looking at how the organization compares to the peer group for benchmarking.

Peer Grouping

TBS sets up peer groups of similar and like healthcare organizations for analysis.

We utilize one of over 20 healthcare organization types and business volumes from over 100 key healthcare statistics to create the standard peer groupings for comparative analysis. These peer groups of like organizations provide the means to have apples to apples peer comparisons.