Team Application: Balanced Scorecards

Leaders within health care often use a balanced scorecard to help monitor the state of their organization. In order to be an effective management tool, a scorecard must include the most important indicators of an organization’s status, while not being so lengthy as to be overwhelming.

For this Team Application, you and your team members will review a scenario about a hypothetical health care organization and analyze its balanced scorecard. Using your team’s dedicated discussion forum, you and your team members will critique this scorecard by answering questions in Part 1 and Part 2, below.

Scenario: West Central Hospital
West Central Hospital is a major teaching hospital that operates intern and residency programs, and is a member of a multihospital health care system. The hospital is located in the suburbs, and its community has new building construction, moderate population growth, and aging and pediatric populations that are increasing.

This hospital has these additional features:
• 410 licensed beds for general acute care, but only 370 operating (staffed) beds
• Annual admissions of about 30,000
• An emergency department with approximately 90,000 annual visits
• A case mix index of about 1.15
Among the services it provides are:
• Both inpatient and outpatient rehabilitative (physical therapy, occupational therapy, and speech language pathology) services
• Behavioral health services
• A neonatal intensive care unit
• All other ancillary and support services expected of such a hospital
The hospital is currently using a Balanced Scorecard for West Central Hospital. One of West Central Hospital’s administrators asks your team to analyze and critique their scorecard and provide them with suggestions. Specific questions are provided below.

• Download and print a copy of the Balanced Scorecard for West Central Hospital, Analyze it in light of the scenario above.
• Read through the categories of information on the scorecard. Review the various weekly topics in this course—e .g., forecasting, capacity management, reengineering, staffing, scheduling, productivity, and supply chain—to help you identify key areas that should be reflected in the scorecard and corresponding metrics that are important to health care organizations. Do you see any important areas missing? Anything redundant?
Complete the following:

Average length of stay:

• Identify and define the respective numerator, denominator and rate/ratio.
• Review and interpret the trended data. What do the data, and their trends, tell you about this particular aspect of the hospital?
• Suggest a likely type of database or data source for each metric (this can be from internal and/or external sources).
• Suggest actions that management could take to improve outcomes associated with the metric.


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