The role of technology and quality on hospital financial performance

Abstract

The stimulus for this research is that as US hospitals and health care organizations become more competitive, wise investments in technology and quality improvement are keys to financial success and survival. A structural equation model is hypothesized using the following five constructs: clinical technology; information technology; clinical quality; process quality; and hospital financial performance. No research to date has examined the relationships between the type of technology, the type of quality, and hospital financial performance. The general research hypothesis tested is that hospital technology directly drives (affects) quality and hospital financial performance. The results indicate that the type of hospital technology (clinical or information) drives different types of quality-related performance (clinical or process), and directly and indirectly affects hospital financial performance. The simple recursive model documented here is an important first step to defining more complete models that accurately predict hospital financial performance as a function of technology and quality investments and initiatives. The article concludes by summarizing results, discussing their implications, and proposing future research ideas.

Technological innovations and hospital performance: a systematic review of the literature

“…Of the 26 abstracted publications, technology was the focus in only two of these studies 36,37 and only eight studies included financial performance measures. Given the increasing adoption of technological innovations, further research is needed to understand the implications of technology adoption on hospitals' clinical and financial performance.…”

“…For example, the generalizability of the findings of two technology-focused publications were limited since one study 37 relied solely on cross-sectional survey data, while the other study 36 relied on cross-sectional data from only one state (Florida).…”

“…Zengul et al more technological services; [36][37][38][39][40][41][42][43][44][45][46][47] and five publications, all with a nursing focus, used the Saidin index, a special hightech index that takes into account both the breadth and rareness of high-tech services. [48][49][50][51][52] Eight studies investigated the technology-financial performance link, again with differing research designs, sample sizes, and study periods (Table 1), and mixed results.…”

The Relationship between Employee Interaction and Service Quality in the Private Sector: A Jordanian Case Study Approach

“…Li, David A. Collie, 2000.The results of their paper indicate that the type of hospital technology (clinical or information) drives different types of quality-related performance (clinical or process), and directly and indirectly affects hospital financial performance.…”

Organizational culture and technological innovation adoption in private hospitals

“…They also realize the correlation between technological innovations and hospital performance (Li and Collier, 2000). Organisations and leaders try to create an institutional framework in which innovation will be accepted as fundamental cultural norms in the midst of technological and other changes.…”