Performance Management is skillful business accomplishment through effective use of resources. The fate of these resources—from personnel to working capital and IT—hinges on the healthcare organization’s financial well-being. According to the American Hospital Association, the number of US hospitals has declined for the past several years. This development illustrates how even the brightest and most caring clinicians cannot care for patients if their healthcare organization is moribund. This chapter introduces the key financial, operational, and utilization performance indicators that administrators can use to monitor the health of their organization. These nonclinical indicators are grouped as in Figure 6.1.