Study On Comprehensive Budget Management Of Non-profit Hospitals Based On The Balanced Scorecard (BSC)

Although the comprehensive budget management has been mature used in the enterprise for many years, the current budget management in most of the Chinese hospitals is still simply aiming at making financial accounting on a big scale and accomplishing budget declaration according to the author’s knowledge from books and papers and working experience for more than ten years about budget management. What’s more, recently, Chinese government has deepened the medical system reform and opened the medical market gradually. As a result, a large number of private and foreign investment and other for-profit hospitals join the competition in the medical market. The survival and development of China’s non-profit hospitals are becoming more and more serious. In order to enhance the core competitiveness of the hospital, for non-profit hospitals of comprehensive budget management has become an important research topic for scholars and practitioners, this paper tries to study the subject.First of all, this thesis will analyze the feasibility of Applying Balanced Scorecard to the comprehensive budget management in China, which according to the management characteristics of Chinese non-profit hospitals, the macro-economic environment and the status quo of hospital budget management. Secondly, it further discusses the management framework and process, organization system and responsibility center of the comprehensive budget management of the non-profit hospital based on the Balanced Scorecard theory. Thirdly, the paper constructs a set of comprehensive budget management target system from four dimensions, such as the financial, the patient, the internal business process and the learning and development of the staff. Then the paper introduces the implementation, control and adjustment, evaluation and incentive mechanism of the comprehensive budget of the non-profit hospitals. Finally, taking SE hospital as an example, this paper introduces the specific application of the comprehensive budget management in the non-profit hospital. Through the analysis of the case, it verifies the scientific and rational use of the Balanced Scorecard tool for the comprehensive budget management in China.The main results of this study: according to the development strategy and the annual work plan, the paper puts forward the construction of the comprehensive budget management system of the non-profit hospitals based on balanced score card. This study can achieve the balance of interests of patients, hospitals and employees, and ultimately achieve the unity of the social and economic benefits of the non-profit hospitals.