Health care in Kuwait is a major economic sector that has been growing remarkably. More than 25% growth has been observed over the past five years in the private sector facilities. The availability of financial resources and country’s modern healthcare infrastructure allow limitless opportunities to provide high standard care services and build well-equipped and staffed medical facilities. Sustaining the high standards of the service, however, needs more effective performance measurement systems. In this paper we propose a dynamic performance management system framework based on the balanced scorecard and System Dynamics simulation, for the healthcare system in Kuwait. The proposed framework can help ensure the alignment of the performance and strategies at private and public healthcare facilities with the vision of the government.