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Top2. Literature Review
Performance measurement is one of the most important current topics discussed in healthcare institutions. Evaluation of quality improvement in healthcare (Ovretveit & Gustafson, 2002), and clear definition of the terms such as ‘healthcare performance’ and ‘healthcare measurement’, and ‘improvement of the patient outcomes’(Hickman, 2007) is fundamental to the intelligent understanding of the healthcare processes and actions. Without agreeing on basic definitions, the interpretation of measurement and marketing information leads to misunderstanding and confusion. Furthermore, because measurement is only one of many functions in business, it is important that the terms used in the business’ analysis and its measurement are in accordance with other business’ functions, such as: Logistics, Finance and Quality. Between patient satisfaction with care, and costs, Kenagy, Berwick and Shore found a strong correlation, indicating significant reduction in the cost of care when service improves (Press, 2006; Oakland & Oakland, 1998). Also Hickman cites revenue enhancement and the cost reduction in a public healthcare as a key consideration (2007). In other words, if a sustainable quality program has been developed, ultimately the return on investment will be high. This program is important as a source of information for hospital’s managers in screening for Financial and Logistic problems and developing an effective plan of action for quality improvement in healthcare organization (Levine Plume, & Nelson, 1997). The best practice for integration of business and healthcare delivery processes is learning how to connect the quality and clinical effectiveness and performance measurement in healthcare. The question is how to connect those things? Of course we should measure: performance, financial outcomes, patient satisfaction and hospital facilities in a consumerism context (Labarere & Francois, 1999; Turnbull & Hembree, 1996) and adopt this idea to the local market and country law.