The impact of quality practices and employee empowerment in the performance of hospital units

Healthcare is a unique services environment with increasing demand for services coupled with widely diverse patient needs. In addition, hospitals are under increased pressure to provide quality care yet simultaneously decrease associated costs. This study examines how the use of quality practices and employee empowerment impact hospital unit outcomes. Specifically, the sociotechnical theory is used to explain the relationship of quality practices and employee empowerment in respiratory care services. Utilising data from 101 different hospital units, survey responses from managers and physicians within the same hospital units are used to test the impact on quality and cost of care performance metrics via path modelling. The results show the social side of improvement programs, i.e. employee empowerment, may be a critical component to true quality improvement in hospital units. Furthermore, while respiratory care managers feel that employee empowerment reduces costs of patient care, physicians felt that there was no impact on costs. The implications of these findings and differing perspectives are discussed.