Financial indicators in healthcare quality management systems

Abstract

Purpose

The purpose of this paper is to highlight the usefulness of financial information as a complementary tool for quality programs implemented in healthcare institutions and, subsequently, to introduce an approach to its systematic management.

Design/methodology/approach

This paper begins with a description of the current status of quality management in healthcare services, continues with a theoretical explanation of the importance of financial indicators for making decisions, and finishes with a practical example showing how to integrate financial data into healthcare quality programs.

Findings

Financial indicators play a key role in healthcare quality management systems (QMSs). These indicators can be managed jointly with traditional non-financial measures, through introducing minor adjustments to the ISO 9000 model.

Research limitations/implications

The approach presented in the second part of this paper was built based on theoretical arguments and on its use in industries other than healthcare. Hence, further research is needed to provide evidence of its practical application.

Originality/value

First, this work integrates disciplines which are usually managed separately, such as quality and accounting. Furthermore, it focusses on an industry such as healthcare, where QMSs are not highly developed.

Citation

Sedevich-Fons, L. (2014), "Financial indicators in healthcare quality management systems", The TQM Journal, Vol. 26 No. 4, pp. 312-328. https://doi.org/10.1108/TQM-01-2014-0009