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Performance Measurement as the Basis for Hospitals Strategic Management

In: Country Experiences in Economic Development, Management and Entrepreneurship

Author

Listed:
  • Verica Budimir

    (Polytechnic in Požega)

  • Ivana Dražić Lutilsky

    (University of Zagreb)

  • Martina Dragija

    (University of Zagreb)

Abstract

Hospitals are institutions of very high degree of complexity and they absorb significant budgetary resources. Effective management is very important for hospitals and for society as a whole. In conditions of limited financial resources, management of hospitals is extremely complex and demanding, and requires the use of high quality and timely management information. Authors analyze what information managers of public hospitals need for successful, balanced management. The aim is to explore issues of performance measurement as a basis for strategic business management of Croatian hospitals. Hospitals are under pressure to provide high quality services, while in the same time, they need to reduce costs, improve performance and increase customer satisfaction. Information on costs, prices and service fees, program goals, methods of measuring programs’ performance, financial and non-financial performance indicators are therefore extremely important for strategic business management of hospitals. This paper analyzes the ways of measuring hospital’s performance, the selection and definition of adequate performance indicators, and models of performance reports as a basis for business decisions making and the presentation of performance. Based on the analysis we propose performance report for one hospital in Croatia, a methodology of drafting the report as well as its use in decision-making process.

Suggested Citation

  • Verica Budimir & Ivana Dražić Lutilsky & Martina Dragija, 2017. "Performance Measurement as the Basis for Hospitals Strategic Management," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Ugur Can (ed.), Country Experiences in Economic Development, Management and Entrepreneurship, pages 825-845, Springer.
    • Handle: RePEc:spr:eurchp:978-3-319-46319-3_53
    DOI: 10.1007/978-3-319-46319-3_53
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