The Balanced Scorecard Solution at Peel Memorial Hospital
| Case Analysis
Thomas N. Bailey
Prior to the 1990s, generous government funding allowed Canadian health care facilities to provide excellent service and quality. In the early 1990s, increasing health care costs have changed government funding, requiring providers to be more financially accountable. In the mid-1990s, hospitals and regional health authorities across Canada were under siege from funding restraints, mergers and forced closures. At the same time, the healthcare industry was focused on delivering high-quality patient care and aligning the key stakeholders to the newly created vision. To evolve and to survive, Peel Memorial Hospital (PMH) implemented the Balanced Scorecard performance management system and that is the focus of this case study. Also highlighted are the value of and the benefits to be gained when best practices from the corporate sector are successfully adapted to the health care environment. History and Issues
Peel Memorial Hospital (PMH) in Brampton Ontario lacked measurable targets and tired Mission Statement that tried to be all things to all people (Harber, 1998). Internal surveys revealed that employees were unclear on the organization’s strategic direction and the linkage of various programs and initiatives undertaken. In 1994, PMH embarked on a comprehensive Continuous Quality Improvement (CQI) training program for all staff which was followed by a burst of departmental and interdepartmental improvement initiatives. The hospital management looked closely at whether time, money and energy were being focused on the key clinical and business processes. Meanwhile, the hospital employees wanted to know how the evolving program management structure relates to PMH’s move into a patient focused care model; how these organizational development initiatives tie in with PMH’s move...
References: Mellow, J. A. (2011). Strategic Human Resource Management. Mason, OH: South-Western Cengage Learning. Chapter 10, p. 438-454.
Harber, B. W. (1998). The Balanced Scorecard Solution at Peel Memorial Hospital. Hospital Quarterly, p. 59-63.
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