Measuring Performance in Health Care
Nastase, Stacey M.
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The author describes her internship in the business office at William Beaumont Hospital-Troy, creating a balanced scorecard for the Care Management Department. This scorecard would eventually be presented to the Hospital and Medical Administration at the mid-year report. The balanced scorecard was used as the way to measure the performance of the entire Care Management department, the teams within the department and the individuals on each team. The balanced scorecard rests on the framework and the objectives of a hospital. Customer satisfaction, quality, growth and financial success provide the framework for William Beaumont Hospital-Troy. It is important the balanced scorecard is carefully constructed, for poorly built balanced scorecards can have detrimental effects. Healthcare economics comprises a large part of the economy. The assessment of the financial condition of business enterprises is essential to the economy's smooth and efficient operation. Most business decisions in the economy are directly or indirectly based on perceptions of financial condition. This includes the largely nonprofit healthcare industry. The balanced scorecard is one way to evaluate the financial condition of healthcare entities. One of the scorecard's best strategic applications to healthcare has been instituted at Duke Children's Hospital (DCH) in Durham, North Carolina. With the implementation of the balanced scorecard, DCH experienced reduced costs, improved margins and a return to profitability. Additionally, physician, patient, and staff satisfaction scores improved significantly. DCH is one of many healthcare organizations to have experienced success because of a balanced scorecard. Indeed, balanced scorecards are an effective way to measure performance. A properly constructed balanced scorecard can result in many different areas of improvements. From customer satisfaction to dollars and cents, the balanced scorecard allows companies to create an environment where all people are on the same page; an environment where the mission and the strategy are executed; an environment where teamwork and individual performance is recognized and rewarded; an environment where goals are achieved and success is attained.