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Using performance indicators to improve performance.

Penelope M Mullen1

  • 1Health Services Management Centre, University of Birmingham, UK. p.m.mullen@bham.ac.uk

Health Services Management Research
|November 6, 2004
PubMed
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Performance indicators (PIs) in the UK NHS can be counterproductive when used for judgment. Presenting PIs to encourage analysis of interactions can improve healthcare performance.

Area of Science:

  • Healthcare Management
  • Health Services Research
  • Performance Measurement

Background:

  • The UK National Health Service (NHS) implemented performance assessment using numerous performance indicators (PIs) and league tables.
  • This system involves targets, star ratings, rewards, and penalties for healthcare organizations.

Purpose of the Study:

  • To evaluate the effectiveness of current NHS performance assessment methods.
  • To explore alternative approaches for utilizing PIs to enhance learning and improve healthcare performance.

Main Methods:

  • Analysis of 'mini case studies' based on earlier PI systems supplemented by expert systems.
  • Focus on encouraging the analysis of interactions between different performance indicators.

Main Results:

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  • Identified complex relationships and explanations for performance variations not evident from individual PIs or league tables.
  • Suggested potential areas for further exploration and performance improvement strategies.

Conclusions:

  • Using PIs solely for judgment can create perverse incentives and be counterproductive.
  • Presenting PIs in a format that facilitates exploration and analysis can significantly improve their potential to enhance NHS performance.