More competition and more value-based reimbursement (VBR) are making performance management more important for health and human service management teams—they need to run business operations, track and correct staff performance, negotiate contracts—all the while out positioning other competitors in the market. The question is, does your management team have useful data available to make these decisions?
Creating a performance management system that reports metrics in a way that promotes action and performance improvement takes planning. Without a dashboard to display what data usable, answering that you have the data might not matter all that much. Data is great, but hardly useful without a good dashboard. You can measure and show outcomes, but they must be articulated in a way that the audience (your management staff) understands. That was my takeaway from The 2019 Performance Management Institute session, Building A New Performance Management Dashboard: How To Use KPIs To Manage Performance In A Value-Based Market, featuring Ashley Sandoval, Associate Chief Executive Officer, Emergence Health Network and Diana Salvador, Psy.D., Vice President, Quality Assurance and Risk Management, CPC Behavioral Healthcare.
The session called out five keys to building an effective KPI system:
- Prioritize high utilizers—The consumers using the most services are responsible for the highest spend, which isn’t a surprise to anyone in the field, but is where provider organizations need to focus their KPIs for maximum effect.
- Prioritize measurement of evidence-based practices— The performance expectations of value-based reimbursement will likely be demand that more provider organizations invest in standardized treatment protocols, meaning they need to measure evidence-based practices.
- Create infrastructure to share data—You need to be able to collect the data, analyze the data, exchange the data, and display the data in real-time. Otherwise, you have a file of information that no one internally, or externally, can use.
- Know the limits of technology—Technology won’t tell your value story. That takes staff that understands how to use the technology to extend the value-proposition that is critical to leveraging the power of data.
- Know the limitations of staff who use the technology—You can measure and show outcomes, but they must be articulated in a way that the audience understands. This isn’t necessarily a given, and the reports need to be built with staff understanding in mind.
Ms. Salvador explained that CPC Behavioral Healthcare pursued KPIs in response to federal grants and a VBR pilot that forced the organization to reconsider what it would take to stay in business while telling their value story to different target audiences that included board members, payers, consumers, and staff.
Ms. Sandoval explained that Emergence pursued KPIs as part of their three-year strategic plan to align service with the Certified Community Behavioral Health Clinic (CCBHCs) model which Texas doesn’t have yet but that Emergence has identified as the future of the market. As a result, Emergence chose 16 measures for their 1115 waiver funding, nine of which are attached to CCBHC core measures.
Both expressed the need for organizations to move KPIs from the tactical to the strategic, or as Peter Drucker put it, “Management is doing things right; leadership is doing the right things.” Being strategic with your KPIs means choosing those KPIs that will most effectively define “truth” by reaching an internal consensus on what metrics will be the most valuable to know. The tactical work will then be how to display that data to the teams that need it.
For more on understanding and incorporating dashboards, check out these resources from the OPEN MINDS Industry Library:
- Technology As A Workforce Solution
- Performance Data, Dashboards & Metrics-Based Management: Meaningful Data For Meaningful Decisions
- A Better Metrics Dashboard Means A Better Nonprofit Board
- The ‘How To’ Of Metrics-Based Management
- Putting Performance Into Compensation
And for more on a powerful reason to leverage your data, join OPEN MINDS Senior Associate Deb Adler on August 12 for her seminar, How To Build Value-Based Payer Partnerships: An OPEN MINDS Executive Seminar On Best Practices In Marketing, Negotiating, & Contracting With Health Plans.