1. Originally presented August 2006

2. AGENDA
 Healthcare Market Resources Background
 Local Market Benchmarking
 Current State of Local Market Information
 Disease Adjusted Financial Benchmarks

3. HEALTHCARE MARKET RESOURCES
BACKGROUND
 Healthcare Market Resources' mission is to provide
home health agencies, hospices and related parties
with the tools to better understand their local market
 Home Health Market Profiles
 Hospice Market Profiles
 Referral Source(Hospitals & SNF’s) Discharge
Information

4. BENCHMARK CHARACTERISTICS
 Important
 Measurable
 Relevant
 Impactable
BENCHMARKING IS ONLY A STEP ON THE ROAD
TO IMPROVING ORGANIZATIONAL
PERFORMANCE

5. BENCHMARKING COMPARISONS &
RATIONALE
 Agencies with similar ownership
 Facility-based or Freestanding, Non-profit versus For-
Profit
 Similar incentives create similar behavior
 Agencies of comparable size
 Similar scale implies comparable level of management
resources and sophistication
 Agencies in same geography
 Face same challenges from environmental factors

6. HEALTHCARE MARKET RESOURCES
LOCAL MARKET BENCHMARKING
 Includes all agencies in a local market, defined by
county
 Reflects home health’s role as part of a larger
healthcare delivery system
 All agencies have same environmental factors
-Same staffing issues -Same MD practices
-Same SNF bed levels -Same demographics
-Same Medicaid policy

7. LOCAL MARKET PROFILES
 National database of Medicare claims
 Every provider
 Every county
 Database includes almost all data reported on UB-92
 Tailor counties for each provider number within an
organization
 Complete package of standardized reports
 Customized reporting available

8. HOME HEALTH MARKET PROFILES
A series of customized market reports for counties defined by the customer:
1. Market Size & Agency 6. Demographics Report*
Market Share Report*
2. Primary Diagnosis Report* 7. Financial Analysis Report
3. Key Indicators by Diagnosis 8. HHRG Scoring Domain*
Report Report
4. Referral Source/Discharge 9. Provider HHRG Analysis
Disposition Report* Report
5. Visit Activity & Revenue *County Level Report
Impactors Report*

9. MARKET SIZE AND SHARE REPORT

10. VISIT & REVENUE ACTIVITY REPORT

11. DEMOGRAPHICS REPORT

12. HHRG SCORING DOMAIN REPORT

13. FINANCIAL ANALYSIS REPORT

14. PROVIDER ANALYSIS

15. PRIMARY DIAGNOSIS REPORT

16. DISEASE ANALYSIS REPORT

17. REFERRAL SOURCE & DISCHARGE
DISPOSITION REPORT

18. POTENTIAL LOCAL BENCHMARKS
Visits/Episode Discipline Visits/Episode
Episodes/Discharge LUPA Percentage
Downcode Percentage Seasonality Index
Average Case Weight Avg Revenue/Full Episode
Visits per LUPA Episode % to Other HH Agencies
% High Acuity Episodes Avg Case Mix Unit
Visits/ Full HHRG % Frail(85 yrs old & above)
% Minority % Therapy Cases

19. DISEASE ADJUSTED FINANCIAL
BENCHMARKS
 Based on assumption that clinically similar patient
populations have similar characteristics
 Financial indicator performance is a combination of
patient mix and operational outcomes
PURPOSE: TO DETERMINE HOW MUCH
VARIATION IS DUE TO EACH FACTOR

20. DISEASE ADJUSTED FINANCIAL
BENCHMARKS
 To adjust for patient mix, multiply the financial
indicator for each clinical group of patients by the
MARKET patient mix percentage
 Compare result to agency’s performance on given
indicator and then see how much can be attributed to
patient mix

21. EXAMPLE

22. KEY QUESTIONS
 Is local market benchmarking relevant for your
organization?
 Does local market benchmarking provide a
meaningful comparison versus other benchmarking
approaches?
 Does the lack of a dialogue partner diminish the value
of local market benchmarking?

23. CONTACT INFORMATION
Rich Chesney
President, Healthcare Market Resources
rchesney@healthmr.com
215.657.7373
215.657.0395(f)
www.healthmr.com