Case Study: St. Mary’s Duluth Clinic
An innovative leader in healthcare for northeastern Minnesota and north-
western Wisconsin, St. Mary’s Duluth Clinic Health System (SMDC)
encompasses 20 clinics, a 350-bed tertiary medical center, two community
hospitals, and a specialty care facility. SMDC’s medical team of more than
400 physicians and 200 allied healthcare providers work with an experienced
staff of more than 6,000 to provide primary care, specialty services, and med-
ical technology to families in their own communities. SMDC began using the
balanced scorecard when it was a newly merged organization facing decreased
revenues as a result of financial constraints in the healthcare environment, such
as the Balanced Budget Act. Since then, the balanced scorecard has become
the cornerstone for all strategic decisions, providing direction for daily deci-
sion making.
Not only has SMDC made the balanced scorecard the framework for all
leadership sessions, but it has also used the balanced scorecard to align its serv-
ice lines and regional community clinics, link its budget to the strategy, and dis-
seminate strategic awareness to every employee. In addition to improved fiscal
strength, SMDC’s patients are also feeling better; they now enjoy easier access
to the primary care clinics, and their overall satisfaction with both hospitals and
clinics continues to climb. With such significant gains, SMDC has created a
promising prognosis for its own institution and for those it serves.
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