Duke Children's Hospital and the Balanced Scorecard

914 Words4 Pages
Duke Children's Hospital and the Balanced Scorecard This essay examines Duke Children's Hospital's implementation of the balanced scorecard (BSC) approach monitoring and managing their performance. The Hospital achieved a dramatic turnaround in its finances and patient and staff satisfaction ratings over a period from 1993 to 2000. The case study authors attribute the Hospital's success to its use of the balanced scorecard methodology. In 1996, the Hospital found itself confronted by mounting challenges caused by falling revenues and increasing expenses. Cost per case for children's services increased by 42% over a three year period from 1993 to 1996. The Hospital was faced with having to consider drastic solutions, including eliminating programs and reducing services. Staff productivity along with patient and staff satisfaction had also fallen significantly. Duke responded to these challenges by implementing the balanced scorecard methodology, an analysis technique that helped them translate their mission of delivering quality clinical outcomes, along with their overall business strategy, into specific quantifiable goals that they could monitor to determine how well their organization was achieving those goals. The BSC methodology, which had grown so popular that the Gartner Group estimated that at least 40 percent of all Fortune 1000 companies were using it (TechTarget, 2012), helped Duke Children's hospital to strategically align their administrators and clinicians to
Open Document