Remuneration as a strategy to improve service quality, cost-effectiveness, and organizational performance of private hospitals

Abstract

Objective

The study aimed to prove the effect of remuneration on health service quality, cost-effective, and organizational performance of private hospitals.

Method

The design of the research was a quantitative method with a cross-sectional survey. Questioners were delivered online to the population target – the employee of 115 Muhammadiyah and Aisyiyah Hospitals in Indonesia. The samples were 163 people from 58 hospitals who returned the completed questionnaire. Sampling employed convenience technic. Data analyses used Partial Least Square (PLS) as a Structural Equation Model alternative.

Results

Sew the financial compensation effected on quality health service, cost-effectiveness, and organizational performance.

Conclusion

The hospital should utilize the remuneration strategy to improve the health service, cost-effective, and organizational performance.