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Performance Measurement as the Basis for Hospitals Strategic Management

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Country Experiences in Economic Development, Management and Entrepreneurship

Part of the book series: Eurasian Studies in Business and Economics ((EBES,volume 5))

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.

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Acknowledgements

This work has been fully supported by Croatian Science Foundation’s funding of the project 8509 Accounting and financial reporting reform as a means for strengthening the development of efficient public sector financial management in Croatia. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of Croatian Science Foundation.

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Authors and Affiliations

  1. Social Department, Polytechnic in Požega, Požega, Croatia

    Verica Budimir

  2. Faculty of Economics and Business, Department of Accounting, University of Zagreb, Zagreb, Croatia

    Ivana Dražić Lutilsky & Martina Dragija

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  1. Verica Budimir
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  2. Ivana Dražić Lutilsky
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  3. Martina Dragija
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Correspondence to Verica Budimir .

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Editors and Affiliations

  1. Faculty of Political Sciences, Istanbul Medeniyet University Faculty of Political Sciences, Istanbul, Turkey

    Mehmet Huseyin Bilgin

  2. MUFG Union Bank , San Francisco, California, USA

    Hakan Danis

  3. Faculty of Tourism, Istanbul Medeniyet University Faculty of Tourism, Istanbul, Turkey

    Ender Demir

  4. Eurasia Business and Economic Society , Fatih, Istanbul, Turkey

    Ugur Can

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Budimir, V., Lutilsky, I.D., Dragija, M. (2017). Performance Measurement as the Basis for Hospitals Strategic Management. In: Bilgin, M., Danis, H., Demir, E., Can, U. (eds) Country Experiences in Economic Development, Management and Entrepreneurship. Eurasian Studies in Business and Economics, vol 5. Springer, Cham. https://doi.org/10.1007/978-3-319-46319-3_53

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