Benchmarking operation and maintenance costs of French healthcare facilities

Abstract

Purpose

The purpose of this paper is to present a benchmarking study of operation and maintenance costs of French healthcare facilities between 2008 and 2009. The investigation presents findings using quantitative methods, including cumulative frequency and descriptive statistics. The purpose also is to highlight and capture the performance profile of long‐term hospitals, using several operational cost drivers.

Design/methodology/approach

A literature review revealed that there are no studies on the benchmarking of operation or maintenance costs of health facilities in France. Operational cost drivers reported in literature from other countries were used as the underlying constructs for this research, with a view to generating a benchmarking framework for the health assets in the data sample. The data were extracted from the databases of the hospitals concerned. Some of the data were collected via interviews and questionnaires. Statistical analysis was carried out to investigate and generate potential benchmarking cost curves. Potential operational cost drivers were extracted and used to develop cumulative frequency curves for benchmarking purposes.

Findings

The authors found that cost per bed ratio can be used as an efficient metric to classify health facilities into similar to data sets. The results also show that the operational costs of utilities, maintenance and operations & maintenance staff correlate positively and significantly with the square meter of floor area. This relationship indicates that 82 per cent of the operational performance can be explained by this linear relationship. However, it was found that the relationship between the total of operational costs per square meter with the floor is negatively correlated and surprisingly only explains 41 per cent of the performance of the health asset operational cost variation in the data sample.

Originality/value

The paper presents the first metric benchmarking method in France which allows health facility managers in France to evaluate and develop operational strategies, with a view to reducing the costs burden.

Citation

Sliteen, S., Boussabaine, H. and Catarina, O. (2011), "Benchmarking operation and maintenance costs of French healthcare facilities", Journal of Facilities Management, Vol. 9 No. 4, pp. 266-281. https://doi.org/10.1108/14725961111170671