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8 Financial Meassures Every Hospital Executive Should Know

By Lee Ann Runy

The balanced scorecard is used to relate critical performance data to help executives understand the organization's financial strength, capacity and market position. It is intended to help executives and other decision-makers track organizational performance and plan for growth and expenditures. William Cleverley, president of Cleverley Associates, Worthing-ton, Ohio, and professor emeritus at The Ohio State University, Columbus, recommends the following eight measures for a hospital executive dashboard. Other measures may be added, depending upon factors important to the organization's success.

Sources: 2004 State of the Hospital Industry, Cleverley & Associates; Financing the Future: Core Competencies in Capital Planning, www.cleverleyassociates.com; Healthcare Financial Management Association and GE Healthcare Financial Services, July 2004; Rural Policy Research Institute

This article 1st appeared in the June 2005 issue of HHN Magazine.

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