A Balanced Scorecard Approach in Assessing IT Value in Healthcare Sector: An Empirical Examination

  • Authors:

  • Ing-Long Wu;Yi-Zu Kuo

  • Affiliations:

  • National Chung Cheng University, Chia-Yi, Republic of China;National Chung Cheng University, Chia-Yi, Republic of China

  • Venue:
  • Journal of Medical Systems
  • Year:
  • 2012

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Abstract

Healthcare sector indicates human-based and knowledge-intensive property. Massive IT investments are necessary to maintain competitiveness in this sector. The justification of IT investments is the major concern of senior management. Empirical studies examining IT value have found inconclusive results with little or no improvement in productivity. Little research has been conducted in healthcare sector. The balanced scorecard (BSC) strikes a balance between financial and non-financial measure and has been applied in evaluating organization-based performance. Moreover, healthcare organizations often consider their performance goal at customer satisfaction in addition to financial performance. This research thus proposed a new hierarchical structure for the BSC with placing both finance and customer at the top, internal process at the next, and learning and growth at the bottom. Empirical examination has found the importance of the new BSC structure in assessing IT investments. Learning and growth plays the initial driver for reaching both customer and financial performance through the mediator of internal process. This can provide deep insight into effectively managing IT resources in the hospitals.