Importance Of Benchmarking In Healthcare System

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Healthcare system is complicated of accountable relationships concerning authorities, individuals, the government, supplier organizations and purchaser businesses. Economists qualify these as principal agent relationships, and claim that two essential conditions must be in place to allow them to work correctly: great informative data regarding representative 's operation, as well as some incentives to support the representative to act consistent with the principal 's desires (Smith, 2005).
In John Stewart 's phrases, an accountability connection needs a rendition of an account by which the representative (performance details) keep an account by the main agent (associated incentives). The idea of 'performance management ' may be considered as the style of operational information and incentives to procure desirable objectives. All the accountability relationships in a healthcare system need operational information to be able to work efficiently (Smith, 2005).
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Benchmarking is set as an efficiency tool for measuring the performance of an organisation against a standard, whether absolute or relative. It can be used to: assess performance objectively; expose areas where improvement is needed; identify other organisations with processes resulting in superior performance, with a view to 
their adoption; and to test whether improvement programmes have been successful. 
Benchmarking can be effective at all levels of operation, from the conduct of individual processes, such as invoice handling, to the operational performance of organisations with large number of staffs, such as a welfare benefits delivery

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