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Cost-effective service excellence in healthcare

Author

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  • Jochen Wirtz

    (National University of Singapore)

Abstract

Berry AMS Review, 9(1–2), (2019) highlights the urgent need for innovation in healthcare as cost pressure is intense and service quality, both in terms of objective care and treatment quality, is critical for the wellbeing of our societies. Yet, administrative and operational waste is prevalent and service quality leaves much to be desired in many healthcare institutions. This commentary draws on the article by Wirtz and Zeithaml Journal of Service Management, 29(5), 907–931, (2018) and discusses how three strategic pathways towards cost-effective service excellence (CESE) can be applied to healthcare. CESE is defined as achieving low unit costs (i.e., high productivity) while at the same time delivering service quality (i.e., service excellence) at an industry-leading level. The three pathways are the dual culture strategy, the operations management approach, and the focused service factory strategy. Implications for innovation in healthcare are discussed.

Suggested Citation

  • Jochen Wirtz, 2019. "Cost-effective service excellence in healthcare," AMS Review, Springer;Academy of Marketing Science, vol. 9(1), pages 98-104, June.
    • Handle: RePEc:spr:amsrev:v:9:y:2019:i:1:d:10.1007_s13162-019-00139-7
    DOI: 10.1007/s13162-019-00139-7
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    References listed on IDEAS

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    1. Jochen Wirtz & Valarie Zeithaml, 2018. "Cost-effective service excellence," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 59-80, January.
    2. Leonard L. Berry, 2019. "Service innovation is urgent in healthcare," AMS Review, Springer;Academy of Marketing Science, vol. 9(1), pages 78-92, June.
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    Cited by:

    1. Paluch, Stefanie & Wirtz, Jochen, 2020. "Artificial Intelligence and Robots in the Service Encounter," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 4(1), pages 3-8.

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