Performance

The term “performance” refers to output results and their outcomes obtained from processes and services that permit evaluation and comparison relative to goals, standards, past results, and other organizations. Performance can be expressed in non-financial and financial terms.

The Baldrige Health Care Criteria address four types of performance: (1) health care process and outcomes, (2) patient-and other customer-focused, (3) financial and marketplace, and (4) operational.

“Health care process and outcomes” refers to performance relative to measures and indicators of health care delivery important to patients and other customers. Examples of health care performance include reductions in hospital admission rates, mortality and morbidity rates, improvements in functional status, nosocomial infection rates, length of hospital stays, and patient-experienced error levels. Other examples include increases in outside-the-hospital treatment of chronic conditions, culturally sensitive care, and patient compliance and adherence. Health care performance might be measured at the organizational level, the DRG-level, and the patient- and other customer-segment level.

“Patient- and other customer-focused performance” refers to performance relative to measures and indicators of patients’ and other customers’ perceptions, reactions, and behaviors. Examples include patient loyalty, customer retention, complaints, and customer survey results.

“Financial and marketplace performance” refers to performance relative to measures of cost, revenue, and market position, including asset utilization, asset growth, and market share. Examples include returns on investments, value added per employee, bond ratings, debt-to-equity ratio, returns on assets, operating margins, performance to budget, amount of reserve funds, days cash on hand, other profitability and liquidity measures, and market gains.