Paul M. Lefkovitz, Ph.D. President, Behavioral Pathway Systems August 25, 2011

1. The Florida Behavioral Health Benchmarking Initiative: A Portal to Organizational Excellence and Efficiency Paul M. Lefkovitz, Ph.D. President, Behavioral Pathway Systems August 25, 2011

2. The Current Context for Benchmarking • Current economic conditions pose a grave threat to behavioral health and human services providers throughout the United States • All organizations will need to deliver optimal financial, operational, and clinical performance to survive and thrive in the months and years ahead • Benchmarking is one of the most potent and under-utilized management tools available

3. Why Benchmark? • Performance is measured in all organizations • Clinical, operational and financial dimensions • How helpful is performance data? • Does data drive organizational decision-making? • Does data drive organizational vision?

4. The Limitations of Performance Data • A thermometer reading would have little value as a measure of your health… • If you didn't know that 98.6 is the “normal” temperature!

5. The Limitations of Your Performance Data • Similarly, knowing that your no-show rate is 17% is of limited value in evaluating the health of your organization…if you don’t know how others are performing

6. Data without Meaning • We are deluged with data without meaning • Data without a context may feel like a bunch of numbers • What is the answer?

7. The Role of Benchmarking • Benchmarking provides the vital external context for understanding your measured organizational performance • Identifies organizational strengths and opportunities for improvement

8. Benchmarking Defined • Gift and Mosel (1994) define benchmarking as “the continual and collaborative discipline of measuring and comparing the results of key work processes” Gift, R. and Mosel, D. (1994). Benchmarking in Health Care, American Hospital Association

9. A Tiered Model of Benchmarking • Descriptive/Normative Benchmarking • Comparative Benchmarking • Process Benchmarking • Each builds on the preceding type

10. Descriptive/Normative Benchmarking • Most common form of benchmarking • Industry overviews, government reports • Static snapshot of industry performance • No formal or statistical comparisons between an organization’s performance and industry norms

11. Comparative Benchmarking • Formal comparison of an organization’s performance against a descriptive benchmark • Typically reported as percentile rankings but can be reported in graph form also

12. The Importance of Formal Comparative Benchmarks

13. Process Benchmarking • Process benchmarking draws upon benchmarking data to identify potential best practices • Achieved by comparing the practices of top performers with others • Methods that distinguish top performers from others may be potential best practices

14. Process Benchmarking Insights: Outpatient Productivity • Productivity is vital to financial survival • Potential best practices identified include: • Centralized scheduling • Scheduling 30 hours per week per clinician • Regular, written productivity feedback • Providing incentives to do groups • Private-practice compensation model • Having clinicians call clients that no-show • Making reminder calls to reduce no-shows

15. Benchmarking and Performance Improvement • How does benchmarking improve organizational performance? • Human nature gives benchmarked data its power • Nobody wants to “bring up the rear” • Benchmarked data prompts action • Helps identify and prioritize performance improvement • Provides a realistic target

16. Benchmarking and Organizational Improvement • Outpatient No-Shows • Provider discovered no-shows were high. Implemented three Best practices that reduced no-shows by 32%. Impact: Outpatient volume increased by 3,000, adding approximately $180,000 to net margin • Revenue Cycle • Observed pattern of high Days in AR, AR Over 90 Days and Bad Debt. Modified revenue cycle process. Impact: Bad Debt declined from 6% to 3%, AR over 90 Days was reduced from 28% to 18% and contribution to net margin increased by almost $300,000

17. Benchmarking and Organizational Improvement (Continued)) • Outpatient Productivity • Regarded productivity level as OK until learning of levels achieved by others. Implemented 6 tactics learned through benchmarking. Impact: Annual productivity per FTE increased from 935 hours to 1,100 hours with $240,000 bottom line improvement • Staff Retention • Overall turnover was satisfactory. But benchmarking revealed marked turnover problem with bachelor’s level clinical staff. Implemented methods of top performers and retention of Bachelor’s Level staff increased from 55% to 78%. Estimated savings in recruitment and other personnel costs was $120,000

18. Benchmarking and Organizational Improvement (Continued)) • Restraints in RTC • Unaware of high rate in youth RTC • Introduced “top-down” actions including extra training, observation, coaching, documentation, and others • Restraint occurrences dropped by 90% • Access • Statewide initiative resulted in 50% reduction in days to first appointment

19. The Pursuit of Benchmarking • Benchmark data historically difficult to obtain & very expensive when available • State Associations of Addiction Services, the National Council for Community Behavioral Healthcare, Alliance for Children and Families and numerous other state and national associations have partnered with Behavioral Pathway Systems to bring affordable and accessible benchmarking to providers

20. BPS Benchmarking Initiatives • Georgia Association of Community Service Boards • Alabama Council of Community Mental Health Boards • Pennsylvania Community Providers Assn • New Jersey Assn of Mental Health Agencies • Community Behavioral Health Assn of Maryland • Community Behavioral Health Assn of Illinois • South Dakota Assn of Youth Care Providers • Michigan Assn of Community Mental Health Boards • California Council of Community MH Agencies • California Alliance of Child and Family Services • Alliance for Children and Families • State Associations of Addiction Services • NIATx

21. Florida Behavioral Health Benchmarking Initiative • New state-of-the-art Florida benchmarking initiative, sponsored by: • Florida Alcohol and Drug Abuse Association (FADAA) • Florida Council for Community Mental Health • With the support of the Florida Department of Children and Families

22. Objectives • Provide individualized benchmarking reports to participating organizations that will permit them to gauge their performance against others in the state and throughout the U.S. • Support organizational improvement by identifying and disseminating potential best practices, promoting mutual learning, and guiding improvement efforts

23. Alcohol and Drug Benchmarking • Florida initiative tied to national benchmarking initiative sponsored by NIATx, SAAS, and BPS, in operation since 2009 • 21 benchmark dimensions • Approximately 150 input metrics

24. Operational Benchmarks • Initial Access • Length of Stay/Utilization, by Level of Care • Subsequent Access (Number of days from intake to first treatment appt) • Average Caseload Size of Clinician, by Level of Care • Outpatient Productivity • Average Group Size

25. Clinical Benchmarks • Engagement/Retention, by Level of Care • Outpatient No-Show/Cancellation Rates • Client Satisfaction/Perceptions of Care • Degree of Engagement with Recovery Support Services • Involvement of Significant Others

26. Financial Benchmarks • Cost per Unit of Service, by Level of Care • Salaries, by Role • Administrative Overhead as a Percent of Total Expenses • Payer Mix • Current Ratio (Assets Divided by Liabilities) • Net Days in Accounts Receivable • Days of Cash on Hand

27. Organizational Climate Benchmarks • Staff Morale/Satisfaction (25 Item Measure and automated administration and scoring to be provided) • Staff Retention/Turn-Over • Percent of Staff Position Vacancies (Counselors)

28. Mental Health Benchmarking • Tied to MHCA and BPS mental health benchmarking initiatives • 25 benchmark dimensions • Approximately 120 input metrics

29. Operational Benchmarks • Access • No-Show/Cancellation Percentages • Outpatient Counseling Productivity • Percent of Outpatient Services Delivered in Groups • Average Outpatient Group Attendance • Recovery-Oriented Practices • Healthcare Integration • Information Technology FTEs as a Percent of Total FTEs

30. Clinical Benchmarks • Client Perceptions of Care • Annual Psychiatric Hospitalization Percentage • Client Suicide

31. Financial Benchmarks • Current Ratio • Days of Cash on Hand • Net Margin Percent • Payer Mix • Net Days in Accounts Receivable • Total Cost per Person Served per Year • Management and General Expense as a Percent of Total Expenses • Psychiatric and Medication Management Direct Cost per Hour of Service • Outpatient Counseling Cost per Hour of Service

32. Organizational Climate Benchmarks • Staff Turnover • Organizational Climate Survey

33. Data Submission • On-line benchmarking survey • Aggregated anonymous data-no complicated encounter-level data • No software needed • User-friendly, encrypted and secure • Quarterly submission-Available 24/7 • Submit relevant and available data--no reporting requirements • State-of-the-art on-line data validation

34. BenchmarkingReports • Standard Report • Executive Summary Report • Organizational Climate Report

35. Standard Benchmarking Report • Normative Data • Sample Size • Mean • Median • Standard Deviation • Comparative Data • Overall Percentile Rankings • Peer Group Comparisons (budget size, geographic area, setting) “Apples to Apples” • State Norms if sample size permits • Previous Scores

36. Standard Benchmarking Report

37. Executive Summary Report • Designed for busy senior leaders and boards • Graphic representation of scores • Brief, key highlights

38. Executive Summary Report

39. Executive Summary Report II

40. Communal Learning • Process benchmarking • Monthly free audio-conferences (toll-free number) • Monthly newsletters • Learn from top performers • Private discussions with top performers • Data-driven discussions among participants

41. Demonstration of Comparative Benchmarking • Real mini-benchmarking experience • Audience polling technology used to demonstrate comparative benchmarking steps • Metric will be reviewed and defined • Anonymous polling will be conducted • We will identify top performers • Potential best practices will be explored

42. Benchmarking Topics • Access • Number of days from initial request to first scheduled appointment • Outpatient Productivity • Number of productive face-to-face hours per clinician per day

43. Closing Thoughts • Did this exercise get you thinking about opportunities for improvement? • Benchmarking brings about an understanding of organizational performance that is not possible any other way • Can support financial survival and promote organizational excellence • Benchmarking can represent the rising tide that lifts all ships • Be active participant in the Florida Initiative!

44. Questions? Contact: Paul M. Lefkovitz, Ph.D. President, Behavioral Pathway Systems www.bpsys.org 877-330-9870 (Toll-Free) plefk@bpsys.org