STRATEGIC MANAGEMENT OF HEALTH CARE ORGANIZATIONS BASED ON KPI AND KRI: ANALYSIS OF IMPLEMENTATION IN THE RIVNE REGIONAL CLINICAL HOSPITAL

Abstract

The reform of Ukraine’s healthcare system has fundamentally changed the operational model of medical institutions, shifting from state-budget funding to a model based on the provision and contractual sale of medical services. This shift has created strategic challenges for healthcare institutions, necessitating the introduction of modern strategic management approaches and the reengineering of internal business processes. In this context, the implementation of performance-based management tools such as the Balanced Scorecard (BSC), Key Performance Indicators (KPIs) and Key Result Indicators (KRIs) is becoming essential for ensuring organizational sustainability, service quality, and patient trust. The article explores the practical application of these tools using the case of Yuri Semenyuk Rivne Regional Clinical Hospital. The research demonstrates how the integration of KPIs and KRIs into the hospital's strategic management system enabled a more transparent, comprehensive, and dynamic performance evaluation framework. KPIs are used to assess the performance of individual healthcare professionals based on service volume, service quality, patient satisfaction, innovation, and compliance, while KRIs are applied at the departmental level to evaluate overall effectiveness and strategic alignment. The paper details the hospital’s experience in designing a cascading evaluation model that incorporates both financial and non-financial indicators across strategic dimensions such as finances, clients,  internal processes, and learning & growth. It also outlines the methodology for weighting and calculating composite indicators using a structured index system. The annual revision of indicators and development of indicator passports have proven to be critical for adaptability and relevance.