MANAGED CARE September 2003. ©MediMedia USA
A relatively new concept in strategic management provides a way to balance quality and customer satisfaction with costs and long-range goals.
During the 21st century, successful health care management will depend on organizations and top executives balancing quality and customer satisfaction with adequate financing and long-range goals. Long past are the days of fee-for-service and indemnity insurance policies. Today's health care organizations must deal with managed care, government oversight, aging baby boomers, new technologies, and increasing pharmaceutical prices. In 1996, Robert S. Kaplan and David P. Norton wrote The Balanced Scorecard as an introduction to their management strategy for business in the information age. After being successfully implemented by AT&T, Intel, and 3M, the Balanced Scorecard finally has made its way into health care. This article explains how the Balanced Scorecard differs from other management strategies and cites application of this strategy in small and large health care organizations.
Author correspondence:
Judith A. Shutt
10116 Spicewood Mesa
Austin, TX 78759-6842
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