A Model for Analyzing the Impact of Total Quality Management and Non-Financial Performance on Financial Performance of Healthcare Institutions

Abstract

This study's main aim is to define total quality management's critical factors in the healthcare sector and to measure those factors' effects on business performance of hospitals in Turkey. Hospitals' performance is measured using subjective measures based on how hospitals' managers perceive how their organizations perform according to the competition. Partial least squares analysis technique was used to investigate the relationship between TQM practices and business performance. Analysis of the data from 50 hospitals revealed that TQM practices influence financial performance indirectly by influencing nonfinancial performance.