Date:Â March 31, 2023
To:Â Faculty, Mercy Hospital
From:Â Madison Greer, Healthcare Manager
Subject:Â Balanced Scorecard for Mercy Hospital
Balanced scorecards are utilized in hospitals nationwide since the early 1990s (KocakÃ¼lÃ¢h, 2007 (Wanga, 2022) to best translate strategy into 4 points of focus: financial, stakeholders, internal processes, and learning & growth. This scorecard works to align business processes with strategic planning and provide an overview of the main areas needing corrective action. Using Key Performance Indicators (KPIs), the hospital has pulled reports on many of the hospitalâ€™s current functioning rates such as statistics on beds, employees and their salaries/hours, in-patient and out-patient visits (including ER and clinic visits). These KPIs can also provide descriptive analysis for patient satisfaction, employee satisfaction, and development/learning plans within the facility. Patient safety as well as provider safety both physically and electronically through data (EHR systems) can also be quantified into measurable and reachable goals such as hand-washing rates or surgical safety checklists.
Four Points of Focus
Each point of focus converges with the other and helps improve the other. For example, increased morale (learning) could improve patient satisfaction (stakeholders) which could help growth in financial revenue (financial) which could assist in improving medical capabilities of facility (internal processes) (Voelker, 2001). As we notice on the current mock up of the scorecard, there are missing or lacking initiatives. Our mission and vision statements are vague. Observing each indicator and a plan of action for each KPI, will help facilitate a plan in which all of the hospital can be involved. Without having numbers or data for where we currently stand, it is hard to say what our initiatives should be.
Firstly, in the financial mission, we can acknowledge that the KPIs are not clear in what the objective or initiative should be for the hospital as a whole. Is the goal to reduce absenteeism from nurses and have more nurses on staff? How does this help the hospital? A clearer objective/KPI/initiative would be: O: improving revenue by employing a greater number of providers; KPI: number of staff and faculty on payroll; I: hire 10% more nurses and providers to payroll, respectively. Â By clearly identifying what the hospital needs to expand on, a better strategy can be set in place to improve the financial wellbeing of Mercy.
In the stakeholder focus, we can observe that there are already 2 initiatives but what are they really? What kind of management staff leadership initiative is being proposed and would that fit more in the lea