Using the Balanced Scorecard for Successful Health Care M&A Integration
Organizations, for the past 30 years, have used the Balanced Scorecard to measure and implement their strategies. A particular application has been for a company’s merger and acquisition activity. Special attention is needed, however, when used for M&A in the health care setting because of the industry’s multiple customers and other stakeholders.
NEJM Catalyst
May 21, 2020
Summary
The failure of merged organizations to achieve stated goals is commonplace. In health care, the challenge is exacerbated by the industry’s third-party payer system and multiple stakeholders, especially the physicians in the merging entities. This article describes how the Balanced Scorecard helps health care leaders overcome cultural misalignment across previously independent providers, enabling them to become better aligned to a new strategy for delivering higher value for patients, physicians, payers, and communities.
Notes
The author acknowledges Thomas H. Lee, MD, and Michael Nurok, MD, for contributing insights on physicians’ concerns after an M&A event.
Robert Kaplan is a consultant and Thought Leader for The Palladium Group, which helps private and public sector organizations implement the Balanced Scorecard and associated strategy execution system.
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NEJM Catalyst Innovations in Care Delivery
May 21, 2020
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Copyright ©2020 Massachusetts Medical Society.
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Published in issue: January 5, 2020
Published online: May 21, 2020
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