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A 21st-Century Approach to Improving Operational Effectiveness: Increasing Healthcare Value by Reducing Clinical Variation
A focus on the impact of Verras' Clinical Compass™ on length of stay and average profit and loss per case by physician.
Twenty-first-century healthcare requires a fundamentally new approach to improving the operational effectiveness of hospitals and health systems. Clinical variation is defined as the variation in physician practice patterns and decision-making as evidenced by differences in resource consumption and length of stay for patients in the same diagnosis related group (DRG). In simpler terms, clinical variation shows the wide array of differences in physician behavior. Reducing variation is critical to improving operational efficiency and value by improving quality and cost outcomes.
Verras' Clinical Variation Solution™ has earned the exclusive endorsement of the American Hospital Association (AHA). Our methodology and tools, including our Clinical Compass™, target all aspects of operations, including staffing, non-labor costs, revenue enhancement, quality, timeliness and throughput. The benefits of our approach include reduced length of stay and resource consumption, increased revenue, and improved quality and labor productivity.
The focus of this paper, the first of a series on Verras' Clinical Variation Solution™, will be on the use of Verras' Clinical Compass™ - a type of physician scorecard - and the resulting impact on length of stay and average profit and loss per case by physician. First we will describe what is different about clinical variation as an approach to operational effectiveness. Then we will provide a summary of our approach and tools, followed by a couple examples of our approach's positive outcomes. Finally, we will end with a section on why our solution is so effective.
