Modelling management response and online reviews for improved financial performance of hospitals.

Abstract

Hospitals are increasingly changing their online review strategy from active listening to proactive engagement to ensure proper responses to patients. Reviews of and responses from hospitals vary in different regions of the world, thereby the process of ranking of hospitals is bounded to a specific region. On the other hand, working conditions in public hospitals have been of great concern worldwide for healthcare personnel. Due to the poor review of a hospital, financial performance is gradually deteriorating, which leads to the migration of healthcare personnel from one hospital to another. This study investigates the combined effect of management responses and online reviews on the financial performance of hospitals by concentrating on three areas of concern. First, how variation in management responses, both within a hospital and on peer review sites, affects the motivation of healthcare personnel towards service and number of patients seeking services. Second, a cyclic link depicting interrelationships among four major domains, namely rating, management response, financial performance, and recommendation, has been presented. Third, a generic model is proposed to improve the performance of hospitals in each of the above domains, and analysis has been done to make the model region-specific. A case study on Indian hospitals is performed to depict the sufficiency of models. It is found that management intervention on social media should be strategic, and a higher average rating tends to mitigate the effect of negative responses.