Is there a link between hospital profit and quality?
Cleverley, W.O.; Harvey, R.K.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 46(9): 40; 42 44-45
1992
ISSN/ISBN: 0735-0732 PMID: 10145680 Document Number: 403327
In industrial firms, high perceived quality in products or services leads to high return on investment. The link between high quality and high profit is more difficult to document for healthcare products and services. An even more important question for healthcare managers is whether there is a link between poor-quality services and low profitability. A study of a small sample of HCFA high-mortality hospitals shows that poor quality hospitals are less profitable. Although the demand for the products and services of poor-quality hospitals is relatively strong, such hospitals are underinvested in assets and understaffed, the study shows.