Performance outcomes of balanced scorecard application in hospital administration in China

- We examine varied statuses of BSC application in public hospitals in China.
- A large portion of Chinese public hospitals have adopted BSC at present.
- BSC application improves organizational performance in Chinese public hospitals.
- BSC application enhances individual performance in Chinese public hospitals.

This study investigates current status of balanced scorecard (BSC) application and its impact on hospital performance in China. A nationwide survey indicates that a large portion of Chinese public hospitals have adopted BSC in hospital administration at present. By applying univariate and regression data analyses, we find BSC application contributes to the improvement of organizational and personal performance and such a contributing effect increases with the extent (level) of BSC application. In addition, we find the positive impact of BSC application on hospital performance is affected by the factors of operational scope/scale, technological quality (rating) and comprehensiveness of medical resources equipped by the hospitals. Our study findings should enrich the extant literature with empirical evidence on the benefits of BSC application in the health care industry and provide the Chinese experience that can be a reference for expanding BSC application in hospital administration or other non-profit organizations in other countries, the developing countries in particular.