Health care providers and institutions are complicated businesses. It balances quality sensitive service to profitability in order to sustain its operation. These two components, service and profitability, are critical aspects in the operation of health care institutions. The absence of one component will negatively impact on the other. That is why health care institutions need an effective management tool to ensure that service and profitability will complement each other. The balanced scorecard system can provide synergy to these two important aspects needed by health care institutions.
The balanced scorecard management system operates on four basic assumptions. These are sensitivity to client needs, refinement of business processes, internal growth and learning, and improvement of company financials. If these critical performance measures are applied to health care institutions, it could ensure continued growth as well as development of quality service. Health care facilities should ensure that the needs of their patients are satisfied. It is their mandate to deliver quality service. Strengthening this core competency can contribute greatly to the overall growth of health care institutions. Internal growth and learning is also critical in order to deliver highest quality service to patients. The capabilities of its staff are essential in this area. Improvement of processes involves the alignment of service based on the institution ‘s strategies and mission. And lastly, efficient management of company financials will ensure that delivery of health services will not be interrupted.
The four areas that will be developed through balanced scorecard system can effectively address management issues of health care institutions. Moreover, development in these critical areas could push the growth of health care institutions as providers of quality and excellent health services.