Total Quality Management Implementation in Healthcare Sector, Its Impact on Performance of Hospitals

The focus of this article is to have a discussion on TQM implementation in the hospital sector and to find out the relationship between TQM practices and organization performance of hospitals. This research is based on literature review of Quality Management and various critical success factors namely leadership, communication, employee involvement, customer focus, organization culture, strategic planning and patient loyalty. This article has made an attempt to establish a positive relation between a second order construct of Total Quality Management and their influence on the organizational performance of hospitals in Punjab. The paper has been framed with a conviction that it may prove to be beneficial for academicians and managers to excavate a relationship between Total Quality Management practices and hospital performance. Although it is a commonly accepted belief that National Accreditation Board of Hospitals i.e. NABH accredited hospitals are quality oriented, still non-NABH hospitals can enhance their organization performance focusing on the critical factors and improving their quality. In this article structural equation modelling has been used to bring out a relation between quality practices and performance. In an original way this paper proposes the critical success factors affecting TQM and how the hospitals can improve their quality and ultimately organization performance including subjective and objective performance, by focusing on these measures. The article encourages reflections from managers and practitioners concerning Quality Management in hospital/healthcare sector. We request that medical practitioners follow the procedures for improvement in critical success factors affecting TQM and ultimately, enhancement in their quality management practices in order to achieve better organization performance.