Using routine data for benchmarking and performance measurement of public hospitals in New Zealand

Purpose – The paper aims to outline benchmarking and performance monitoring practice developed by the New Zealand Health Information Service at a diagnosis‐related group (DRG) level. Design/methodology/approach – The indicators are calculated from the routine hospital discharge data in the National Minimum Dataset. The benchmarks are set at either the 20th or 80th centile as a cut‐point that can alert to possible issues or a target for which to aim. Benchmarks can be used to highlight variations by making comparisons with other health‐care providers or the same provider over time. Findings – This approach provides an indication of which DRGs and outcome variables may be worth looking at in more detail. Using comparative measures across providers allows the identification of areas of health care with the most potential for gain. Practical implications – There is strong evidence of changed clinical practice and improved health outcomes following systematic evaluation of some patient management practices. Originality/value – This overview of benchmarking practice using routine data with some distinctive features would be of interest to those with similar undertakings.