Towards a balanced performance measurement system in a public health care organization

Purpose: This article attempts to devise an integrated performance measurement framework to assess the Hong Kong Hospital Authority (HA) management system by harnessing previous performance measurement systems. Design/methodology/approach: An integrated evaluative framework based on the balanced score card (BSC) was developed and applied using the case study method and longitudinal data to evaluate the HA's performance management system. Findings: The authors unveil evolving HA performance indicators (PI). Despite the HA staff's explicit quality emphasis, cost control remains the primary focus in their performance measurements. Research limitations/implications: Data used in this study are from secondary sources, disclosed mostly by HA staff. Practical implications: This study shows public sector staff often attach too much importance to cost control and easily measurable activities at the expense of quality and other less easily measurable attributes'. Originality/value: A balanced performance measurement system, linked to health targets, with a complementary budgeting process that supports pertinent resource allocation is yet to be implemented in Hong Kong's public hospitals.