2-31 Strategy, Balanced Scorecard, Health Care Consumers, employers, and governments at all levels are very concerned about the rising costs of health care. As a result, health-care systems nationwide are experiencing an ongoing demand to improve the efficiency of their operations. The health-care indus- try faces significant challenges due to changing patient needs, reduced reimbursement, and the fierce competitive environment. The industry is experiencing consolidations through systemwide mergers and acquisitions as a way to reduce operating costs. Patients and payors are demanding a one-stop shopping approach. While improving operations is necessary, the quality of the health care delivered must not be jeopardized. The Medical University of Greenbelt is feeling the impact of the increasing penetration of its market by managed-care companies. As a result, management has been asked to develop a strategic plan to ensure that its funding sources will continue to meet the demands of its patients.

Because it is an academic medical center, the Medical University of Greenbelt’s mission encom- passes three components: clinical care, education, and research. Management must consider these competing objectives in the proposed plan:

Required

1.    What should the Medical University of Greenbelt’s strategy emphasize?

2.    Do you think a balanced scorecard could help ensure the success of the Medical University of Greenbelt? What advantages does a balanced scorecard have over a traditional approach?

 

 

 

 

 

 

3.    Determine four or five critical success factors for each of the four areas within the balanced scorecard. Remember that in addition to patients, its employees, suppliers/distributors, other training entities, com- munity, and payors are considered customers.

4.    What types of challenges will management face in implementing a balanced scorecard? How can em- ployee buy-in be increased?v