Braxton Hospital and Health Care Services (BHHS) in Braxton, Mississippi, is a part of the Pillford University Health System. BHHS is a 450-bed community teaching hospital with the following mission: “In six years, Braxton Hospital and Health Care Services, as an integral part of the Pillford Health System, will be the system patients choose, the system to which physicians and payers refer, and the employer of choice for health care personnel.”
To transform this mission to reality, BHHS adopted the balanced scorecard for performance measurement and a plan to implement it by the end of the sixth year. In the first year of the scorecard, BHHS identified 12 scorecard perspectives and 56 critical success factors across these 12 perspectives. In the second year, BHHS refined the scorecard to include the following five perspectives (which included 35 nonquantitative critical success factors):

a. Organizational health (teamwork, leadership development, communications, facilities, etc.).

b. Process improvement (reducing delays, streamlining processes, maximizing the effective use of technology, etc.).

c. Quality improvement (patient satisfaction, improving patient outcomes, external recognition for patient care, etc.).

d. Volume and market share growth (expanded clinical services, etc.).

e. Financial health (financial returns, system efficiencies, etc.).

Required

1. Why did BHHS reduce the number of scorecard perspectives and critical success factors in the second year? The number of perspectives was further reduced to four in the third year; state which you think are the remaining four perspectives, and explain why.

2. For the five perspectives in the second-year plan, develop two to five measurable critical success factors that the hospital might use to measure performance toward the goals of each perspective.

3. Will the scorecard as described in the second-year be effective in helping BHHS achieve its mission?

4. Develop a strategy map for BHHS, incorporating each of the five perspectives of the second-year plan. Explain why you have developed the map in this way.

5. Would a profit center approach work for BHHS? Why or why not?