Measure performance of hospitals using analytic network process (ANP)

Healthcare organisations have been operating in a competitive environment for years. Pressures from government and competition as well as escalating costs have driven executives to search effective performance assessment systems to help them achieve their missions or improve competitiveness. The balanced scorecard (BSC), combination of both financial and non-financial perspectives and criteria, creates a more accurate performance measurement system because it offers a more complete view of a business and can lead to better business decisions. After reviewing the literatures about the BSC and interviewing the 64 executives retains 12 important criteria, including training, satisfaction, turnover, resource, safety, new service, quality, revisiting, patient satisfaction, budget, cost and revenue to construct the hierarchy for hospital performance assessment. Measuring perspectives and criteria of BSC are interrelated. Due to the interdependent relations in decision making, we apply analytic network process (ANP) that captures the outcome of dependency between the perspectives and criteria to handle such problems.