CAREB Computer Aided Real Estate Benchmarking for long-term care facilities

1. Kufstein University of Applied Sciences, Tyrol ERES Conference 2009 Stockholm CAREBComputer Aided Real Estate Benchmarking for long-term care facilities Madritsch Thomas International Benchmarking Institute, University of Applied Sciences FH KufsteinTirol, Austria; University for Health Sciences, Medical Informatics and Technology, UMIT-HALL, Austria

2. Research designBest Practice – Analysis of operating costs in long term care facilities Survey: Operating costs of long term care facilities in Austria Analysis Tool: Computer Aided Real Estate Benchmarking CAREB Aims: Identification cost drivers Detection of optimizing potential – best case Implementation of Benchmarking as Management Tool

3. Relevance of operating cost in LTC • 19% operating cost (Facility Management)

4. Is there room for Improvement? Total CleaningCosts € Net external Area sqm • Collected data of 18 long-term care facilities • Building 1: 4.000sqm • Building 2: 10.000sqm Identical Cleaning Costs (~EUR 250.000.- p.a.)

5. Benchmarking: The “IBI”-ApproachData collection Data collection: • Benchmarking Partner • Benchmarking Platform Important issues: • Consistent definitions costs, floor area, cluster attributes, etc. • Current data volatile energy prices, inflation, etc. need of new data • Comprehensive data collection to allow cluster attributes & different reference figures

6. Benchmarking: The “IBI”-ApproachData harmonisation/ plausibilisation • Detection of outliers within using statistics • Explanation of Outliers • Usage of data from just one source

7. CAREB:Benchmarking tool Performance – Matrix of individual properties

8. Benchmarking: The “IBI”-ApproachKey figure calculation & data analysis • Judging the own performance based on a holistic view …bring more key figures into one chart… Costs per sqm Costs per bed

9. Benchmarking: The “IBI”-ApproachKey figure calculation & data analysis • Judging the own performance based on a holistic view …bring more key figures into one chart… €/sqm €/bed €/resident

10. Benchmarking: The “IBI”-ApproachClustering Modellising Data - Clustering 2.) Clustering reference Buildings 1.) Clustering own Buildings

11. Benchmarking: The “IBI”-Approach Clustering • Modellising Data - Clustering

12. Benchmarking: The “IBI”-ApproachStep 4: Derivation of Actions Cleaningcostdepending on utilizationplanning Operating costs depending on utilization planning Higher amountofsingleroomsentailshighercleaning- andoperatingcost

13. Benchmarking: The “IBI”-ApproachClustering New Way Modellising Data - Clustering 1.) Clustering own Buildings 2.) Clustering reference Buildings

14. Benchmarking: The “IBI”-Approach Clustering New Way Modellising data – learning from the best ?

15. Benchmarking: The “IBI”-ApproachStep 4: Derivation of Actions From PowerPoint to EBIT

16. Benchmarking Future: The virtual Building -Simulation • Benchmarks do not accord to the actual data • Benchmarks do not correct side effects EUR/m² EUR/m² EUR/m² μi μi μi μ 0 0 0 30 30 30 60 60 60 age age age • Ceterisparibussimulationleads • to a highercomparability!

17. Contact: Immobilien Benchmarking Institut IBI Fachhochschule Kufstein Andreas Hofer Straße 7 6330 Kufstein www.immobilien-benchmarking.at Thank you for your Attention!Thomas.Madritsch@hsk-edu.at