Abstract
With more than 70,000 admissions per year, Montefiore Medical Center is one of the largest healthcare institutions in the United States and is the most dominant hospital in the Bronx borough of New York City, which is apparently one of the country's poorest neighborhoods. It has two major campuses, 29 outpatient centers, a home healthcare agency, two nursing homes and a growing number of community centers. The Center's mission is to provide health care services to the public that meet the needs of its diverse communities.
Despite the pressure of escalating costs, uncertain insurance restrictions and severe nursing shortage, Montefiore Medical Center was able to implement more cost cutting to focus on customer care by increasing its revenue and investing in new programs and technology.
This case study outlines Montefiore's use of the Balanced Scorecard to create and implement a new business strategy aimed at balancing population-based health care services with centers of excellence specialized in cancer, cardiovascular diseases, HIV and women's and children's health care.
First of all, we will introduce Montefiore Medical Center by developing the problems it faced over the years and the different objectives it had. Then, we will look at the importance of developing a management system that will support a new organizational structure and strategy by describing its major tool which is the Balance Scorecard. Finally, we will focus our report on the BSC's implementation thanks to its development, its advantages, its limits and its results in order to find some recommendations for the future.
Montefiore Medical Center, in the Bronx, New York, is the university hospital of the Albert Einstein College of Medicine. The hospital named after Moses Montefiore, is one of the 50 largest employers in New York State. It is located in the Bronx, a very poor neighborhood of NYC, where the standard of living is very low. This is the reason why a major part of inhabitants benefits from social healthcare programs such as Medicare and Medicaid.
Medicare is the name of a health insurance system implemented by the American government in order to help 65 year olds and above considering certain specific criteria. In 2005, 42.5 million Americans were eligible for Medicare. However this system doesn't finance the total costs of care and people will have to put in a little sum of money. In addition, other healthcare programs like Medicaid were created to help poor people. Moreover, all around the world, the US healthcare system is considered very unfair, because the contribution system is mostly private and therefore unattainable for most people. This is why it is difficult for Montefiore to generate large profits.
