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The impact of operations competitive priorities on hospital performance

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  • Timothy Butler
  • G. Leong

Abstract

A notable lack of empirical analysis exists on hospital operations strategy in spite of widespread debate on quality, cost, and service delivery – issues which are widely included within the realm of operations competitive priorities. We empirically examine the degree of emphasis placed by administrators on competitive priorities and what impact this might have on performance of not-for-profit, general hospitals. Performance is defined as a composite of financial and operational performance. Our research shows that management's emphasis of cost containment and service delivery consistently results in superior business performance. Quality programs are found to be the most preferred competitive priority initiative, yet show relatively low relation with performance. This suggests that quality programs are a necessary, though not sufficient, component of hospital operations strategy. The competitive dimension of flexibility is being employed, but on a less universal scale. We conclude that administrators are not yet sufficiently skilled in the flexibility priority to make this dimension consistently result in superior business performance. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Timothy Butler & G. Leong, 2000. "The impact of operations competitive priorities on hospital performance," Health Care Management Science, Springer, vol. 3(3), pages 227-235, June.
    • Handle: RePEc:kap:hcarem:v:3:y:2000:i:3:p:227-235
    DOI: 10.1023/A:1019057811167
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    Cited by:

    1. Bichescu, Bogdan C. & Bradley, Randy V. & Smith, Antoinette L. & Wei, Wu, 2018. "Benefits and implications of competing on process excellence: Evidence from California hospitals," International Journal of Production Economics, Elsevier, vol. 202(C), pages 59-68.
    2. Aida Budrevičiūtė & Ramunė Kalėdienė & Jadvyga Petrauskienė, 2018. "Priorities in effective management of primary health care institutions in Lithuania: Perspectives of managers of public and private primary health care institutions," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-17, December.
    3. Main Naser Alolayyan & Ahmmed Saadi Ibrahem, 2021. "Proposed Mathematical Model to Study and Analyze the Relationship Between Operational Flexibility Dimensions and Hospital Performance," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(4), pages 289-305, December.

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