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BUS501 Strategic Management

Published : 13-Sep,2021  |  Views : 10


How might benchmarking be useful for health care administration leaders?

Health care administration leaders face many challenges in ensuring that their health services organizations comply with standards set forth for practice. Further, they must also ensure that relative to their competitors, standards for quality, cost, and patient satisfaction remain consistent. Certain levels of benchmarking, whether internal (across units in an organization), competitive (against rivals), industrial (across the industry), and functional (against recognized leaders), help health care administration leaders establish workflows for top performance.

For this Discussion, review the resources for this week regarding benchmarking. Then, think about your health services organization, or an organization with which you are familiar, and reflect on how this organization may use benchmarking for health care quality.

Post a description of how your organization, or one with which you are familiar, may use benchmarks for effective health care delivery. Be specific and provide examples with fictitious data of some of the organization’s benchmarks. Categorize the benchmarks based on the taxonomy explored this week. Is the organization you selected benchmarking the right measures? Why, or why not?



Benchmarking involves a collaborative comparison between different organizations to adopt best practices at the best cost while promoting the spirit of competition. Successful benchmarking involves preparation then, the involvement of staff and monitoring the key indicators. The basic benchmarking principle is setting aside "the benchmark", which everything else is compared against. Benchmarks can be used to promote efficient healthcare delivery.

According to Kaplan, a balanced scorecard is necessary to achieve an organization's long-term goals. A balanced scorecard in his review includes benchmarks for performance and traditional financial measures. The key indicators to be looked are learning and growth, key internal processes and the relationship of a company to its customers. Western Connecticut Health Network saved +5M in savings of the health costs in five months, through benchmarking as part of the process (Kaplan, & Norton, 1996).  

Benchmarking in Western Connecticut Health Care network hospitals can be set apart as part of innovation, it involved promoting best practices at reduced costs. Comparative data in benchmarking helped providers to keep pace with competitors while identifying areas with problems.  Taxonomy in the hospitals was used to measure the standards of performance and help organizations in shaping the sequence of instructions while supporting the spiral curriculum (Wolper, 2012).

In efficient healthcare delivery, like in the Connecticut Hospitals benchmarking can be used in sharing the best evidence-based practices, tailor specific areas of healthcare giving, improve customer satisfaction and quality. The benchmarking used by Connecticut hospitals were correct because they involved comparing the relationship of a company to customers, internal processes and reviewing financial measures. Conclusively, benchmarking can improve hospitals, however, research on the area is limited and more research needs to be carried out.


Kaplan, R. S., & Norton, D. P. (1996). Using the balanced scorecard as a strategic management system.

Wolper, L. F. (Ed.). (2012). Health care administration: planning, implementing, and managing

organized delivery systems. Jones & Bartlett Learning.

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