Providing an Effectiveness Model for Healthcare and Hospital Services Using Strategic Management Accounting with an Interpretive Structural Modeling Approach

Abstract

Objective: This research aims to propose an effectiveness model for healthcare and hospital services using strategic management accounting with an interpretive structural modeling (ISM) approach.   Methodology: The current study is exploratory and applied. The necessary data for developing the model were collected through semi-structured interviews with experts, specifically 15 accountants with over 10 years of experience, holding Master's and Doctoral degrees, and having experience in the financial and accounting system of the healthcare sector. The research utilized interpretive structural modeling (ISM) to design an applicable model.   Findings: Based on ISM, sixteen factors were identified across three levels. The effectiveness factors for the healthcare and hospital services industry include enhancing the rate of recovery return, improving patient satisfaction, increasing resource productivity, and amplifying the economic impact on society, all of which are placed at the first level. These are the most influenced factors of the model. The second level consists of factors enhancing supply chain performance, including improving healthcare and hospital service quality, enhancing service delivery time, improving interactions with suppliers, and increasing flexibility and adaptability. These factors affect higher-level factors and are influenced by lower-level factors. Additionally, strategic management accounting factors, such as cost and profitability measurement, service quality measurement and monitoring, management of human, financial, technological, and physical resource productivity, the use of advanced costing systems, linking financial performance with operational and strategic performance, using financial and operational data for strategic decision-making and performance improvement, using performance indicators to monitor and evaluate performance, and strategic planning related to future financial and operational perspectives, are placed at the third level, representing the most influential factors of the model.   Conclusion: The conclusion of this study presents an effectiveness model for healthcare and hospital services using strategic management accounting.