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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

Summary

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.

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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.

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.