A smart model for hospital performance evaluation based on balanced scorecard approach and machine learning

Authors

1 Department of Industrial Engineering, Alborz Campus, University of Tehran, Tehran, Iran

2 School of Industrial Engineering, College of Engineering, University of Tehran

3 UniversSchool of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iranity of Tehran

10.22059/aie.2026.409978.1967

Abstract

Performance evaluation in complex service systems is a central concern in industrial engineering, particularly in regulated environments such as healthcare. This study develops a data-driven industrial engineering framework for hospital performance evaluation structured through the Balanced Scorecard (BSC) and supported by exploratory predictive modelling. A structured evidence-based screening process was conducted to identify operationally measurable performance indicators, which were subsequently organised within the four BSC perspectives and aggregated into composite performance dimensions using standardised equal-weight scoring. Quarterly organisational data (2018–2024) from a tertiary hospital were used to examine structural relationships among indicators through a multilayer perceptron neural network. The predictive component is intended as exploratory validation rather than universal forecasting. Results indicate strong alignment between predicted and observed composite performance scores (R = 0.84), suggesting that the selected indicators collectively explain substantial variation within the studied organisational context. Importance and sensitivity analyses further identify cost-efficiency and operational-process variables as influential drivers, while safety, workforce, and patient-related indicators demonstrate meaningful associations. The proposed framework enhances transparency in indicator selection, clarifies multidimensional performance structuring, and provides analytically informed decision support for complex service systems.

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