Grey incidence between KPIs and hospital performance

Purpose – Performance indicates how well the activities, operations and business processes of an enterprise are performed. In health care, performance illustrates the quality of medical services and targets the strategic objectives, the efficiency and effectiveness and the obtaining of the desired financial results. In economic analysis, the key performance indicators (KPIs) offers real, relevant and accurate information regarding the performance, using analysis and diagnosis techniques. The purpose of this paper is to discuss grey systems theory in order to bridge the KPIs and the hospital’s performance. Design/methodology/approach – Using the grey systems theory, the impact of seven selected KPIs (the beds utilization rate, the average length of hospitalization, the average cost of hospitalization/day, the proportion of physicians in total staff, the nosocomial infection rate, the death rate and the diagnostic concordance) on the hospital’s turnover is determined. Findings – By analyzing the grey incidence between turnover and several KPIs, for a period of six years, it has been concluded that the greatest impact on performance has the diagnostic concordance and the percent of the physicians in the total staff, followed by the nosocomial infection rate, the average bed utilization rate and the death rate. Research limitations/implications – The considered case study should be extended by including a greater number of hospitals into the analysis. Originality/value – The usage of the grey systems theory in an uncertain and limited information field such as the medical one, is a premier in this field. According to the grey incidence analysis results, the performance of health care institutions depends mainly on the quality of medical staff (that influence the diagnostic concordance, the nosocomial infection rate and the death rate) and on the management ability to attract competent and well-trained physicians, which can conduct in a new approach that should be considered by the hospitals’ managerial staff.