Benchmark Data and
Laundry Applications
Presented by
Janice Carter Larson, CLLM
Objectives



Define “Benchmarking”
Find out what kind of industry data is
available
Learn how to use industry data to
benchmark and identify opportunities
for improvement
Industry Data Reports



Provide information on linen usage for
inpatient, outpatient and surgical
settings
Help determine product replacement
requirements
Assist laundries and hospitals to set
measurable goals for a linen utilization
initiative
Benchmarking Defined
A process used in management in which
organizations evaluate various aspects of
their processes in relation to best practice
usually within their own sector. This allows
organizations to develop plans on how to
adopt best practice and increase some aspect
of performance. Benchmarking is often
treated as a continuous process in which
organizations continually seek to challenge
their practices.
Cause for Confusion
“Best Practice” and “National Average”
They’re not the same thing!
Data Sources




Encompass National Average Database
The Phillips Report
New Encompass NADB Reports
Other Textile Provider Reports
Hospital Data Variables




Product quality
Percentage of reusable OR linen
Reusable incontinent products
Number of departments authorized to wear
hospital provided scrubs
Encompass National
Average Database






Designed for use primarily by hospitals
Published every two years
Data specific to linen usage
Does not contain replacement cost
information or average cost per pound
Data pulled directly from computer
reports, can now be done online
Data analyzed for accuracy
Data Breakdown





Average pounds per APD by total hospitals,
by staffed beds, by region
Average pounds per activity by inpatient,
outpatient and surgical linen
Average pounds per activity by specific
department
Average item usage per APD by total
hospitals
Includes ranges for reference purposes
“The Phillips Report”



aka the 2005 North American Edition
Comparative Operating Revenues and
Expense Profile for the Healthcare
Textile Maintenance Industry
Designed for use primarily by OPLs,
central and commercial laundries
Published every two to three years
How do I get a copy?
www.phillipsandassociates.com
or
(651)288-4950
Data Breakdown





17 Year Historical Cost Trends
Average Linen Pieces and Pounds Used by
APD for Hospitals and Nursing Homes
Comparative Operating Revenue and Expense
Profile
Laundry Plant Textile Replacement Factors
Laundry Plant Wage and Salary Profile
Other Benchmark Tools




Children’s Hospital NADB
Teaching Hospital NADB
Level One Trauma Center NADB
Reports available from other textile
manufacturers, commercial laundry
companies or industry organizations
Establishing a Baseline


Where are we now?
Where do we want to go?
Common Baselines

Pounds per Adjusted Patient Day


Annual Clean Pounds Processed
Annual Adjusted Patient Day
Cost per Adjusted Patient Day

Annual Clean Pounds Processed
Annual Adjusted Patient Day
versus

LBS per APD x Rate/LB Processing
Linen Management Software



“Big Calculators”
Provide data in a variety of report
formats that enable you to set your
baseline and track your progress
against industry benchmark data
Enable you to share information about
your goals and progress with the end
users or process owners
“Rational Consumption”
the
right product at
the
right time for
the
right reason in
Linen items are consumable medical
supplies designed to be used for specific
purposes.
Creative use = Cost abuse!!
Benchmarking Examples

United Laundry Services, HI



St. Joseph Health System, CA



9 hospitals, 2 Women and Children
Same product, same rate per pound
7 hospitals in California
Same product, same rate per pound
Providence Health System, CA


Two hospitals in SoCal
Same product, same rate per pound
Benchmarking mistakes









Confusing benchmarking with participating in a survey
Confusing benchmarking with research
Thinking there are pre-existing benchmarks for everything
Choosing a process that is too large and complex to be
manageable
Choosing a topic that is too intangible and difficult to measure
Goal is misaligned or cuts across other initiatives
Not establishing a baseline
Not researching the best practice thoroughly
Forgetting about service, delivery and customer satisfaction
Key Points to Consider

“Apples to apples” - compare your facility to
another as similar as possible

Use the data as a guide, not as an absolute

Some of the most effective benchmarking is
done within a hospital or hospital system
Keys to Success




Set measurable goals
Monitor progress, provide updates to
participants to maintain motivation
Publish results, include cost savings
Continually review your current practice in
order to identify opportunities for
improvement
“Some people change when they see the light,
others when they feel the heat.”
Caroline Schoeder