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Published on: February 16, 2011
Issues for academic health centers to consider before implementing a balanced-scorecard effort
W N Zelman1, D Blazer, J M Gower
1Department of Health Policy and Administration, School of Public Health, University of North Carolina at Chapel Hill 27599-7400, USA. Wzelman@unc.edu
Summary
Academic health centers (AHCs) can adapt the balanced scorecard for strategic planning. Modifications are needed to align financial perspectives with AHCs' unique missions and decentralized structures.
Area of Science:
- Healthcare Management
- Strategic Planning
- Organizational Behavior
Background:
- The healthcare environment necessitates enhanced strategic planning and management for academic health centers (AHCs).
- The balanced scorecard (BSC) is a management tool gaining interest in healthcare organizations.
- AHCs present unique characteristics as neither for-profit nor manufacturing entities.
Purpose of the Study:
- To critically evaluate the applicability of the balanced scorecard approach at AHCs.
- To determine if the decentralized nature of AHCs impacts the BSC's usefulness.
- To assess the appropriateness of the BSC's four standard perspectives for AHCs.
Main Methods:
- Analysis of a year's experience with the balanced scorecard.
- Examination of early implementation efforts within AHCs.
- Critical evaluation based on fundamental questions regarding AHC structure and financial perspective.
Main Results:
- The unique characteristics of AHCs may limit the full benefits of the standard BSC approach.
- Adaptations to the BSC are necessary for effective implementation in AHCs.
- The financial perspective of the BSC requires modification to align with AHCs' mission-driven objectives.
Conclusions:
- The balanced scorecard can be a valuable tool for AHCs, but requires significant adaptation.
- Modifications should address the decentralized structure and the specific financial needs of AHCs.
- Revising the financial perspective is crucial, shifting focus from stockholder value to mission accomplishment.
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