Balancing the Health Care Scorecard

A relatively new concept in strategic management provides a way to balance quality and customer satisfaction with costs and long-range goals.

Judith A. Shutt
Southwest Texas State University–San Marcos

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
Phone: (512) 250-9723

Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to or online at

Subscribe to Our Newsletters

Monthly table of contents

Be notified as each issue of Managed Care is available online.

Biweekly newsletter

Recent topics have included:

PTCommunity news

New drug approvals, clinical trials, drug management. Three times per week.