Medical management - Assessment of financial performance improves the quality of healthcare provided by medical organizations

Arnon Afek, Ahuva Meilik, Zeev Rotstein

Research output: Contribution to journalArticlepeer-review


Today medical organizations have to contend with a highly competitive environment, an atmosphere saturated with a multitude of innovative new technologies and ever-increasing costs. The ability of these organizations to survive and to develop and expand their services mandates adoption of management guidelines based on the world of finance/commerce, adapted to make them relevant to the world of medical service. In this article the authors chose to present a management administration assessment which is a process that ensures that the management will effectively administer the organization's resources, and meet the goals set by the organization. The system demands that hospital centers of responsibility be defined, a management information system be set up, activities be priced, budget be defined and the expenses assessed. These processes make it possible to formulate a budget and assess any possible deviation between the budget and the actual running costs. An assessment of deviations will reveal any possible deviation of the most significant factor - efficiency. Medical organization managers, with the cooperation of the directors of the centers of responsibility, can assess sub-unit activities and gain an understanding of the significance of management decisions and thus improve the quality of management, and the medical organization. The goal of this management system is not only to lower costs and to meet the financial goals that were set it is a tool that ensures quality. Decreasing expenditure is important in this case, but is only secondary in importance and will be a result of reducing the costs incurred by services lacking in quality.

Original languageAmerican English
Pages (from-to)56-59
Number of pages4
Issue number1
StatePublished - Jan 2009
Externally publishedYes


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