Benchmarking in the DRG system - a modern and useful management tool

Background. The implementation of a diagnosis-related groups (DRG) based lump sum payment system for hospitals in Germany has led to an enormous increase in transparency; however, the economic burden on hospitals and departments has now increased considerably. In this context the need arises to acquire information about room for improvements and the position in the competitive environment. Objective. Besides open source data, benchmarking projects specifically designed for own needs offer the potential to generate useful information. In practice it is not the benchmarking procedure itself which poses a challenge but the correct interpretation of the information it provides, especially for clinicians involved in decision making. Much of the data produced is most probably of little use and in the worst case scenario carries a risk of contributing to making wrong decisions. Variations occurring in a benchmarking procedure are rarely self-evident and in most cases further supplemental analyses are essential. Conclusion. Modern and sustainable management looks ahead to the future and has to perform better than just dispensing resources based on benchmarks; however, sensible use of benchmarking by taking methodological limitations into account can provide invaluable information and impulses for the development of hospitals and departments.