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Creating a balanced scorecard for a hospital system.

G H Pink1, I McKillop, E G Schraa

  • 1Department of Health Administration, University of Toronto, Toronto, Ontario, Canada. george.pink@utoronto.ca

Journal of Health Care Finance
|December 19, 2003
PubMed
Summary
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Canadian hospitals developed a balanced scorecard to measure performance across clinical, patient, system, and financial areas. This framework offers valuable lessons for healthcare finance researchers and practitioners in performance measurement.

Area of Science:

  • Healthcare Management
  • Health Services Research
  • Financial Performance Analysis

Background:

  • A 1999 collaboration between Ontario hospitals and a university research team aimed to assess hospital performance in Canada's most populous province.
  • The study utilized the balanced scorecard framework, a performance management tool developed by Kaplan and Norton.
  • Performance indicators were established across four critical domains: clinical utilization and outcomes, patient satisfaction, system integration and change, and financial performance and condition.

Discussion:

  • The report details the methodology for selecting, calculating, and validating financial performance and condition indicators.
  • Challenges and insights gained during the indicator development process are discussed.
  • The study emphasizes the importance of robust financial metrics in comprehensive hospital performance evaluation.

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Key Insights:

  • The balanced scorecard provides a multi-dimensional approach to evaluating healthcare organizations.
  • Financial indicators are crucial components of overall hospital performance assessment.
  • The collaborative development process highlighted the need for standardized performance measurement in healthcare.

Outlook:

  • This research offers a practical model for other healthcare systems seeking to implement performance measurement frameworks.
  • Future research could explore the long-term impact of balanced scorecard implementation on hospital efficiency and patient care.
  • The findings provide a foundation for advancing financial accountability and strategic planning in the healthcare sector.