Research On The Application Of The Balanced Scorecard In Performance Management Of Public Hhospitals In China

As China turned from the planned economy into a market economy,and the advancement of medical and health system reform,the government has begun to reduce the investment in pu blic hospitals,which cause more and more pressures among public hospitals.In addition,the number of private hospitals shows an accelerating growth year by year.The existence of pu blic hospitals becomes increasingly intense in modern market environment.One the one han d,introducing a competitive mechanism into the market environment can promote public hos pitals to continuously improve their own service capacity.On the other hand,it makes public hospitals realize that they should improve own management for hospitals’ sustainable devel opment instead of completely depending on the government as the era of planned economy.At current stage,most of our public hospitals began to convert to the enterprises’ manageme nt model,including performance management system and following the road of fine develop ment in order to facilitate hospitals’ rapid and healthy development.As the introduction of performance management in China’s public hospitals is not too long,the relevant researches are not sufficient and there still limitations exist.Generally,current performance management of public hospitals exist numerous issues including strategic objectives deviation,excessive emphasis on economic efficiency,limited data sources of performance appraisal,unfair performance-based remuneration allocation,lack of performance management informatization and so on.At present,for achieving healthy and sustainable development,public hospitals must adhere to the direction of public welfare.Through performance management to improve staff motivation and to avoid brain drain and attract talents,serving patients with high-quality and low-cost medical technology,using fine management instead of extensive management and utilizing resource allocation efficiency can facilitate public hospitals’ sustainable development.Therefore,BY hospital is used as an example in this article.Through learning from domestic and foreign literature,the author proposes to use balanced scorecard as the basis,expand original four dimensions to five dimensions covering financial,internal operations,customers(patients),learning and growth as well as department management.Through screening the indicators under the various dimensions and redesigning the index weight,this paper aims at constructing public hospital performance management system and contributing to the implementation of public hospital performance management.