Balanced Scorecard Kills Innovation at Hospitals: A Literature Review

The main question of this paper is whether the Balanced Scorecard, when applied as performance measurement system hinders innovation at hospitals under study. An in depth literature review is done on the on the scope of performance measurement system and the use of Balanced Scorecard from the context of organizations in general, health care industry, and different types of hospitals. Findings show that no mention of the above found in hospitals applying Balanced Scorecard that measure innovation specifically. It can be concluded that, with innovation being inculcated in the vision and mission statements of the hospital, Balanced Scorecard may not hinder the innovation.