FINDING THE POWER IN NUMBERS
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1 FINDING THE POWER IN NUMBERS A 3-Part Series Mary Keysor RD, MS, LD, FADA Bill Klein Dave Reeves MBA Felicia Smith CDM, CFPP Success Coach DM&A Silver Plate Winner Formerly FSD at Maine Medical Center HFM Past President (Legacy Assoc. of AHF) CEO - DM&A AHF IAB Member Director Hospitality Services Elmhurst Memorial Hospital AHF Treasurer-Elect Manager Critical Access Hospital and Retail Business Memorial Hospital of Converse County Douglas, WY AHF Member ANFP CDM of the Year
2 1 What 2 3 Panelists FIRST THINGS FIRST Presenters: Bill Klein and Mary Keysor Exploring the power, fear, comfort and common mistakes in numbers to do about it? SOMETHING'S BETTER THAN NOTHING Presenters: Dave Reeves and Mary Keysor 5 industry tools available to track data How to get started? REAL LIFE STORIES MISTAKES I MADE Presenters: Dave Reeves and Felicia Smith moderated by Mary Keysor Lessons learned from two FSD peers.
3 2 5 Industry Tools Available to Track Data How to Get Started Mary Keysor, MS, RD, LD, FADA Success Coach, DM&A Silver Plate Winner Formerly FSD at Maine Medical Center HFM Past President (Legacy Association of AHF) Dave Reeves, MBA Director Hospitality Services Elmhurst Memorial Hospital Elmhurst, Illinois AHF Treasurer-Elect
4 CURRICULUM Getting started and making it easy Finding data Process for counting meals/meq Meaning of foregone revenue and transfers vs real cash Review of 5 industry tools
5 GETTING STARTED Set clear guidelines and include with staff merit reviews Select a methodology; commit to it Find support and designate a champion if possible Communicate the importance to management & staff Set up systems to collect data regularly Understand what data is necessary to collect
6 REALITY The positives Director s role is to ensure the department is fiscally responsible Budgeting decisions are based on productivity Foodservice Director / leadership credibility is enhanced Knowledge of the foodservice process grows Administrator credibility Contractor approaches can be turned away at an early stage
7 WHERE IS THE DATA? Finance Monthly expense reports Productive / non-productive hours & dollars Patient days / adjusted patient days / adjusted discharges Department Records Department Records Retail cash (POS Reports) Floor stock, other cash, meal equivalents Rebates (GPO or prime vendor) Transfers / credits Forgone revenue
8 WORD ON CONSISTENCY Tools will define how to count meals Capture all meal equivalents from services provided to non patients according to tool specifications Avoid up charges for floor stock and internal catering unless specified by tool
9 F O R EGONE REVENUE Represents real costs to the department for which you are either not compensated for or receive partial compensation services you provide for which you do not get credit for as a result of an organizational decision Failing to collect the forgone revenue generally results in lower productivity even though you performed the activity
10 MD Staff dinners Board functions Subsidy/discounts Free meals EXAMPLES OF FOREGONE REVENUE might include Free beverages for staff Volunteer meals
11 TOOLS FROM THE INDUSTRY KNDS Knowing Numbers Drives Success (DM&A) Benchmarking Express (AHF) Baseline US Foodservices ActionOI (Truven Health Analytics) Operations Advisor (Premier)
12 KNDS Knowing Numbers Drives Success DM&A s electronic tool centralizes, organizes data Real time at-a-glance data Uses average retail transaction to calculate meq; auto calculates to Master Data page Provides coaching/education for each user Data can be easily transferred to other benchmarking systems (i.e., AHF Benchmarking Express and / or Action OI)
13 KNDS Continued Quick/one access point for your key financial data. Standardizes the method of counting meals, expenses, and revenues. Used proactively, gives potential to make real time decisions instead of waiting for reports from your finance department. Tracks internal data/shows trends for budgeting.
14 KNDS KEY METRICS Food cost per meal Net cost ppd Net of cash ppd Dietitian hours ppd Worked Hr/meal Total cost ppd Floor stock costs
15 AHF Benchmarking Express Self reported data Benefit of all national AHF operator members Results can be sorted bed size, region, service type, hospital type Uses average retail transaction to calculate meal equivalents Financial and customer service data in on-line format Data submittal is monthly Reporting period results received one month after submittal Database confidential
16 AHF Benchmarking Express Provides trend graphs Listserv for questions Establishes percentile ratings 25%, 50%, 75% Results are viewable to the Foodservice Director for areas of opportunity Mentor Program to get started available
17 KEY PERFORMANCE INDICATORS
18 USFS Baseline Value added service for USFS customers Identifies opportunities for performance improvement Ability to contact facilities within peer group is possible Establishes percentile ratings
19 USFS Baseline Uses market basket to determine meq Data computed for multiple areas of department Results reported to FSD in a comprehensive, professionally-bound executive report appropriate for administration
20 ActionOI Truven Health Analytics Comprehensive benchmarking tool for organization managed by Finance Reports usually received quarterly Supports lower cost and increase operational efficiency by comparing your data to best-in-class benchmarks Uses ART to calculate meq
21 ActionOI Truven Health Analytics Identifies opportunities for performance improvement largest comparative data base in industry Data sharing process with peers Establishes percentile ratings 35% 40% 50% Can customize comparative departmental groups
22 Premier - Operations Advisor Organizational driven Requires user data collection along with statistics reported by finance Measures labor productivity Timely results Often productivity targets are set by administration Budgets / cost reductions based upon productivity Administration is easily able to identify department performance
23 Premier - Operations Advisor Key Performance Indicators Actual vs. budgeted hours & FTE s Worked hours per unit vs. target Overtime usage Productivity control chart Counting Meals is critical Premier support on initial startup Options to contact other facilities
24 Use numbers for planning and budgeting Measure what they manage SUCCESSFUL OPERATORS Know the power of numbers Share some numbers with boss; staff Know how to use numbers
25 Success We discussed steps to get started 5 industry tools Process of counting meals / meq Foregone revenue / transfers vs cash Finding data Use data to promote your success
26 Contact Us If you have any immediate needs, require support or intervention, contact DM&A today for a free consultation with Mary Keysor or one of our Success Coaches. DM&A is your solutions provider! (619) info@destination10.com Reference this webinar using code KNDS10 and receive 10% off this DM&A service.
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