Balance Scorecard in Healthcare Industry
INTRODUCTION
The BSC, developed by Robert Kaplan and David Norton, has become a popular management tool for Performance, Management since 1990 s. Adoption of it became main stream amongst many industries quickly, however, the healthcare industry has been slow to adopt them. The healthcare organizations had to face some issues in adopting the BSC to their industry like cost structure, competition, payor hurdles, increasing demand for qualitative treatments, shortage of talented specialists, which forces them to balance cost versus patient outcomes. Key to overcoming these issues is utilizing innovative approaches for performance and performance measurements, such as BSC. By the end of this report, you will be able to see how the BSC has been efficiently used to transform action into improved performance.
. BSC in Health Care Industry & CHS
As it is already known BSC was first introduced in the year 1990 but the health care industry and a lot of other non-profit organizations dint really adopt it till 1996 when a few American and Canadian hospitals started using the system, and till around the year 2000 only 70 out of the 6000 hospitals were using the method. In the year 1997 the Howard Business Review listed the BSC as one of the most influential ideas of 20th century, as it has proven to have a successful track record in cost savings, in improving efficiency, and management of the strategic plans in a better way. The name of the hospital that we have taken into consideration in our case study has not been provided with its real name, and is fictitiously been named as Crandon Hospital. (Austill et al., 2007)
Again going back to the industry as a whole, it has been seen that it has had tremendous growth in the past two decades, in which we have seen a lot of small medical centres taking forms of today’s big well reputed hospitals and for that case well renowned hospitals being shaped into health care cities, for example the Dubai Health Care City. There has
The BSC, developed by Robert Kaplan and David Norton, has become a popular management tool for Performance, Management since 1990 s. Adoption of it became main stream amongst many industries quickly, however, the healthcare industry has been slow to adopt them. The healthcare organizations had to face some issues in adopting the BSC to their industry like cost structure, competition, payor hurdles, increasing demand for qualitative treatments, shortage of talented specialists, which forces them to balance cost versus patient outcomes. Key to overcoming these issues is utilizing innovative approaches for performance and performance measurements, such as BSC. By the end of this report, you will be able to see how the BSC has been efficiently used to transform action into improved performance.
. BSC in Health Care Industry & CHS
As it is already known BSC was first introduced in the year 1990 but the health care industry and a lot of other non-profit organizations dint really adopt it till 1996 when a few American and Canadian hospitals started using the system, and till around the year 2000 only 70 out of the 6000 hospitals were using the method. In the year 1997 the Howard Business Review listed the BSC as one of the most influential ideas of 20th century, as it has proven to have a successful track record in cost savings, in improving efficiency, and management of the strategic plans in a better way. The name of the hospital that we have taken into consideration in our case study has not been provided with its real name, and is fictitiously been named as Crandon Hospital. (Austill et al., 2007)
Again going back to the industry as a whole, it has been seen that it has had tremendous growth in the past two decades, in which we have seen a lot of small medical centres taking forms of today’s big well reputed hospitals and for that case well renowned hospitals being shaped into health care cities, for example the Dubai Health Care City. There has