CBGH “Balance Scorecard for Taking Control of Health Spending”

“Balanced Scorecards” have been around since the 1990’s when Drs. Norton and Kaplan from Harvard promoted them as a means of monitoring complex problems by looking for a limited number of “leading indicators” (e.g., indicators of what to expect).   Until that time, the majority of organizations used complex spreadsheets comprised of numerous “lagging indicators” in their reporting.  Norton and Kaplan sought a more concise, more strategic, and more forward-looking way to manage.  In 1992, they published their findings in a Harvard Business Review article that introduced the idea of a Balanced Scorecard.

As the Balanced Scorecard Institute suggests, “the balanced scorecard (BSC) is a strategic planning and management system that organizations use to:

  • Communicate what they are trying to accomplish
  • Align the day-to-day work that everyone is doing with strategy
  • Prioritize projects, products, and services
  • Measure and monitor progress towards strategic targets

Given the complexity of healthcare, the balanced scorecard seems like the perfect management tool to assist employers in measuring and managing what matters most with regard to controlling their health care spending.  So CBGH has developed a template that members and friends can download and utilize as you plan for 2020.

The CBGH Healthcare Balanced Scorecard looks at five key drivers of your health plan spending and proposes strategies for managing each.  Based on the facts that a) total spend is equal to unit pricing times unit utilization and b) utilization and quality are so intertwined in health care, the CBGH Balanced Scorecard suggests that you manage one or more measures in two pricing and three utilization/quality categories.  Additionally, since both supply and demand influence your costs, the CBGH Scorecard proposes both purchasing and benefits strategies.

Download Balanced Scorecard Here 

Bob Smith

Executive Director/CBGH