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

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This summary is machine-generated.

Total Quality Management (TQM) positively impacts hospital financial performance. Implementing TQM, especially with strong teamwork and clear communication, enhances financial outcomes in university teaching hospitals.

Keywords:
TQMfinancefinancial performancehealthcareknowledgeteaching hospitals

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Area of Science:

  • Healthcare Management
  • Organizational Performance
  • Quality Improvement

Background:

  • Total Quality Management (TQM) is a strategic approach to enhance organizational success through high operational standards and improved financial performance.
  • The link between TQM implementation and tangible financial outcomes in healthcare settings, particularly university teaching hospitals, requires further empirical investigation.

Purpose of the Study:

  • To examine the association between Total Quality Management (TQM) implementation and the financial performance of university teaching hospitals in Jordan.
  • To identify specific TQM elements, such as management roles, teamwork, and communication, that influence hospital financial performance.

Main Methods:

  • A cross-sectional survey was conducted among 172 hospital leaders (directors, managers, department heads, supervisors) in Jordanian university teaching hospitals.
  • Validated questionnaires were used to collect data on TQM implementation and perceived financial performance.
  • Descriptive statistics and multivariable logistic regression analyses were employed to assess the relationships between variables.

Main Results:

  • Both TQM implementation and financial performance were perceived as moderate among the surveyed university teaching hospitals.
  • Higher levels of TQM implementation were significantly associated with improved hospital financial performance.
  • Key factors positively influencing financial performance included higher management positions combined with strong teamwork (aOR = 50.3-94) and effective communication of hospital goals to patients (OR = 20.3).

Conclusions:

  • A significant association exists between Total Quality Management (TQM) and enhanced financial performance in university teaching hospitals.
  • Hospital managers should prioritize TQM implementation, focusing on fostering teamwork and clear communication strategies to improve financial outcomes.
  • This study contributes to the underrepresented empirical literature on TQM in university teaching hospitals, highlighting its impact on measurable financial results.