Mediating Effect of Integrated Systems on the Relationship between Supply Chain Management Practices and Public Healthcare Performance: Structural Equation Modeling

The performance of public healthcare facilities is critical, due to the impact on human lives. However, in Punjab, the infant and maternal mortality rates are 88 per 1000 and 227 per 100,000, respectively, while Pakistan ranks 149th in healthcare worldwide. Against these figures, the targets set in the 2018 Public Health Sector Plan, Building a Healthier Punjab seem overoptimistic. Hence, this study aimed to determine the mediating effect of integrated systems on the relationship between supply chain management practices and healthcare performance. Adopting a quantitative methodology, a survey questionnaire administered to 200 respondents, selected through cluster sampling from a target population 2899 in Punjab. SPSS and AMOS were used for the exploratory and confirmatory factor analyses and structural equation modeling. Following validation of the measurement model, structural equation modeling found integrated systems exerted a significant and full mediating on the supply chain management practices–healthcare performance relationship. The indications are, therefore, that integrated systems and efficient supply chain management practices enhance patients care while minimizing healthcare costs. These findings should be useful to both public and private healthcare facilities, as well as other public organizations and supply chain professionals, by providing a fuller understanding of the issues. Future research studies could further broaden this knowledge through an investigation into the impact of backlog inventories on financial performance.