![]() Efficiency is also considered in planning to contain hospitals’ costs, as the latter is swallowing a high proportion of health care funding ( Mc Kee & Healy, 2002).ĭespite various methods and frameworks of measuring health care organizations’ performance such mainly as balanced scorecard, performance pyramid system, regulatory inspection, third-party assessment and statistical indicators ( Shaw, 2003 Kaplan & Norton, 2001 Lynch & Cross, 1991), no consensus upon an appropriate performance measurement approach in health services has emerged ( Veillard, Guisset, & Garcia-Barbero, 2004). The long-lasting nature of healthcare-related outcomes has de facto made performance measurement challenging and problematic ( Eddy, 1998 de Bruijn, 2002), pushing assessors to mostly rely on efficiency- i.e. Efficiency refers to the resource utilization, while effectiveness mostly evaluates the outcomes ( Ozcan, 2007). Efficiency is further key to the performance measurement as the latter is defined by Neely, Adams and Kennerley (2002) as ‘the process of quantifying the efficiency and effectiveness of past actions’. Measurement is central to quality improvement in organizations ( Zhu, 2003), insofar as there exist such popular confirmatory adages as ‘it is impossible to understand what is not measurable and if something cannot be understood, it cannot be improved’ ( Halachmi, 2002).
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