Usage of Performance Indicators in Croatian Public Hospitals

Abstract

The primary objective of this chapter is to determine the level of usage of performance indicators in the management decision-making process of Croatian hospitals. The objective is to examine how they define business goals and present results within and outside the institution, how they measure performance, define performance indicators and use them in business processes. The aim was also to explore the managers’ opinion on the importance of tracking performance through indicators in business processes such as planning, decision-making, information, and control. A questionnaire was prepared for the survey and sent to all public hospitals in Croatia. According to the Croatian Ministry of Health (Health institutions in the Republic of Croatia, 2018), there are 59 public hospitals in Croatia. The questionnaire answered 21% or 36% of the hospitals, which is a representative sample. Research results show that just some of the hospitals define financial and nonfinancial strategic goals and follow their realization. The results also show that information presented in basic financial reports to hospital managers is mostly sufficient for the management of the institution’s business. Performance indicators are not developed to a significant extent at Croatian hospitals, as a tool for measuring and tracking performance.