National Healthcare Capital Project Benchmarking-An Owner's Perspective

By Kahn, Noah | HERD : Health Environments Research & Design Journal, Fall 2009 | Go to article overview

National Healthcare Capital Project Benchmarking-An Owner's Perspective


Kahn, Noah, HERD : Health Environments Research & Design Journal


Abstract

Few sectors of the economy have been left unscathed in these economic times. Healthcare construction has been less affected than residential and nonresidential construction sectors, but driven by re-evaluation of healthcare system capital plans, projects are now being put on hold or canceled. The industry is searching for ways to improve the value proposition for project delivery and process controls. In other industries, benchmarking component costs has led to significant, sustainable reductions in costs and cost variations. Kaiser Permanente and the Construction Industry Institute (CII), a research component of the University of Texas at Austin, an industry leader in benchmarking, have joined with several other organizations to work on a national benchmarking and metrics program to gauge the performance of healthcare facility projects. This initiative will capture cost, schedule, delivery method, change, functional, operational, and best practice metrics. This program is the only one of its kind. The CII Web-based interactive reporting system enables a company to view its information and mine industry data. Benchmarking is a tool for continuous improvement that is capable not only of grading outcomes; it can inform all aspects of the healthcare design and construction process and ultimately help moderate the increasing cost of delivering healthcare.

Key Words: National Healthcare Capital Project Benchmarking, metrics, benchmarking, external benchmarking, data-based, process-based, comparative analytic tools, collaborative process, benchmarking project cost, project metrics, casual benchmarking, data-driven best practices, Construction Industry Institute, CII, cost metrics, normalization, performance metrics, functional metrics, Kaiser Permanente healthcare facilities benchmarking, data mining, construction costs, capital planning, capital facilities costs

Few sectors of the economy have been left unscathed in these economic times, leaving many feeling uneasy, as though they are passengers on a small craft in a full gale. The design and construction industry has been experiencing the full force of this battering wind. Healthcare construction has been less affected than the residential and nonresidential construction sectors, but it is now starting to bend under the heavy economic pressures. Increased strains on the healthcare construction industry began in 2003 with accelerated construction cost escalation along with increased construction volume and localized overheated markets. In 2008, this pattern reversed as the money supply dried up and the country found itself in a severe recession. As a result, healthcare projects were put on hold or canceled. In conjunction with these problems, the high likelihood of impending healthcare reform is driving a re-evaluation of capital building programs throughout the healthcare industry, which is searching for ways to improve the value proposition for project delivery, process controls, and bricks and mortar. Ways to assess adequacy and effectiveness and to determine best practices have moved up a priority level.

In other industries, benchmarking of component costs has led to significant, sustainable reductions in total costs and cost variations. Within the petrochemical industry, which has been benchmarking its capital projects for years with the Construction Industry Institute (CII), performance has been shown to improve with the length of time a company is involved in the program. In the healthcare industry, a focus on management metrics and external benchmarking is emerging as one of the tools of choice to help plot the course of capital expenditures through these uncertain times. This article outlines the volatile economic environment in which healthcare design and construction finds itself and makes a case for an industry-wide effort to focus on data analysis and sharing to provide decision makers with metrics to make the most of the increasingly scarce capital dollars for healthcare. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

National Healthcare Capital Project Benchmarking-An Owner's Perspective
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.