A hybrid methodology is described to identify a quality gap in a dental hospital. The research case study illustrates how to implement quality improvement in a real-life context. A combination of an ethnographic, narrative, and phenomenological approach in data collection and observations within the dental hospital validates the case findings. A unique method based on systems study and Taguchi loss function is shown to reduce the service quality gap in a dental hospital. A house of quality (HOQ) combines the correlation between “patient's expectations” and the hospital's “technical” characteristics. The correlation between service quality and technical characteristics measures a patient's expectations gap. Factor analysis helps to group service and technical factors for better patient management. A strategy map correlation analysis is generated to manage the quality gap. The correlation analysis between patient expectations and the hospital's technical characteristics identify areas of immediate attention.