NOTE
Please don??™t think this meant that a facility could starve its patients and achieve lower food costs;
these were patients quite capable of complaining loudly if they were underfed.
The people running Medical Non-Profit were interested in determining the
facilities that ran well and those that didn??™t. More than this, they sought to share this
information with the facilities themselves without revealing too much information. In
this particular area, Medical Non-Profit faced stiff competition, so it was important
that the directors of each center not know the money received per patient from federal
and state contracts, which was used to help determine profitability. In addition,
while the director of each center knew his or her expense per patient, the operators
of Medical Non-Profit did not want that information shared with directors of other
centers.
Given the desire to rank centers without revealing the exact figures involved, a
scorecard seemed to be the perfect answer. A KPI for each expense was established,
such as Food Expense, Salary Expense, and so forth, on a per-patient basis. But
rather than showing the actual figure, the only thing shown was an indicator: Green
for Good, Yellow for Marginal, and Red for Bad. The color of the indicator was
based on the expected cost for that item per patient in that facility??™s location. Now,
each facility could immediately see how they were doing against projections in each
expense category.
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