Balance Scorecard in Healthcare Industry

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INTRODUCTION The BSC, developed by Robert Kaplan and David Norton, has become a popular management tool for Performance, Management since 1990 s. Adoption of it became main stream amongst many industries quickly, however, the healthcare industry has been slow to adopt them. The healthcare organizations had to face some issues in adopting the BSC to their industry like cost structure, competition, payor hurdles, increasing demand for qualitative treatments, shortage of talented specialists, which forces them to balance cost versus patient outcomes. Key to overcoming these issues is utilizing innovative approaches for performance and performance measurements, such as BSC. By the end of this report, you will be able to see how the BSC has…show more content…
(Austill, 2007). Regardless of the many advantages that an organization can make use of by adopting the balanced scorecard while planning its organizational strategies, it is seen that its adoption in the health care industry and even by the Crandon Hospital has been slow. The reason for this has been the few problems which are been faced by the non-profit health care organizations while adopting the BSC, they can be listed as:- A lot of non-profit organizations do not even follow the simplest financial measurement tools such as ROI or net income. A lot of these organizations believe that they already have similar tools in place as most of them rely on non financial statistics. Financial outcomes are not an important focus in any of the non profit organization. Compiling of data from different departments in a small time span is
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