Association Between Total Quality Management and Financial Performance: Evidence From University Teaching Hospitals

Total Quality Management (TQM) is a comprehensive approach that helps organizations succeed in maintaining high standards of operations and improving financial performance. The study examines the association between TQM and hospital financial performance. A cross-sectional survey using a previously validated questionnaire was conducted among hospital leaders, including directors, managers, heads of departments, and supervisors in Jordan. The sample was 172 leaders. Descriptive statistics were used to summarize variables of interest and multivariable logistic regression was employed to understand the association between TQM and financial performance in university teaching hospitals. The study found that implementation of TQM and financial performance among university teaching hospitals are moderate based on hospital leaders' perspectives. Moreover, the high implementation of TQM in university teaching hospitals is more likely to be associated with hospital financial performance's effectiveness than low implementation. However, the interaction of higher management positions and teamwork appears to have a positive association. Moderate and high teamwork increases the association of higher management positions, such as supervisory role with effective financial performance (aOR = 50.3, P = .004 and aOR = 94, P = .031, respectively). High effective communication of hospitals' goals and missions to patients and connection with patients through a variety of platforms was associated with a higher odds ratio of effective hospital financial performance (OR = 20.3, P = .023). The study focused on university teaching hospitals; a setting underrepresented in empirical TQM literature. Moreover, it measured the association between TQM and financial performance, a narrower and more tangible outcome than overall quality or satisfaction. There is an association between TQM and the financial performance of university teaching hospitals. The study draws the attention of university teaching hospital managers to the importance of implementing TQM to enhance the financial performance and its outcomes.