Are performance measurement systems useful? Perceptions from health care

Area of Science:

• Healthcare Management
• Organizational Performance
• Strategic Management

Background:

• Performance Measurement Systems (PMS) are recognized for improving healthcare processes.
• Strategic utilization of PMS enhances quality, but the precise linkage requires further investigation.
• This study examines direct and indirect models linking strategic PMS use to improved healthcare processes, considering managerial discretion as a mediator.

Purpose of the Study:

• To test direct and indirect models of the relationship between strategic Performance Measurement Systems (PMS) use and improved healthcare processes.
• To investigate the mediating role of perceived managerial discretion in this relationship.
• To provide insights for healthcare organizations on leveraging PMS for performance enhancement.

Main Methods:

• Partial Least Squares (PLS) analysis was employed.
• Data were collected from a survey of 97 Italian healthcare managers in the Lombardy region.
• A response rate of 77.6% was achieved.

Main Results:

• Strategic PMS use directly and significantly enhances healthcare process improvement (p < 0.001).
• Perceived managerial discretion is positively and significantly influenced by strategic PMS use (p < 0.001).
• The hypothesized mediation effect of managerial discretion on process improvement was non-significant.

Conclusions:

• Strategic PMS use in healthcare organizations directly boosts performance, specifically in improving processes.
• Managers can strategically use PMS to focus on opportunities and threats, thereby improving organizational output.
• Findings support the integration of non-financial measurement tools, like Balanced Scorecards, for enhanced healthcare management.