(adapted from Brian Ballou, Dan L. Heitger, and Richard Tabor, “Nonfinancial Performance Measures in the Healthcare Industry,” Management Accounting Quarterly (Fall 2003): 11-15)

(LO 1, 2) East Alabama Medical Center uses nonfinancial performance measures to track the following objectives:

e Maintain and improve the quality of clinical services.

e Improve patient service.

e Enhance employee recruitment and retention.

Required

a. Link each of these objectives to one of the four balanced scorecard perspectives.

b. Identify where on a balanced scorecard you would most likely find the following metrics:

e Patient satisfaction score e¢ Number of medication errors e Nursing turnover rate

¢ Readmission rate e Number of new hires e Emergency room wait time before treatment e¢ Nurse-to-patient ratio

¢ Likelihood of patient recommending the hospital

¢ Number of patient complaints e Employee satisfaction with incentive systems