Pai 2016
Pai 2016
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Introduction
A service has been defined as ‘any activity or benefit that one party can offer to another that
is essentially intangible and does not result in the ownership of anything…’ (Kotler et al.,
2013 p.322). Service characteristics such as intangibility, inseparability, heterogeneity and
perishability make services distinct compared to goods (Zeithaml et al., 1985). These are also
referred as the SHIP model (simultaneity, heterogeneity, intangibility, perishability) (Hollins
and Shinkins, 2006). It is this fundamental belief that services are dissimilar to goods that
leads to a service discipline requiring innovative thoughts, methods and strategies (Berry and
Parasuraman, 1993). For services, the process is the product (Fitzsimmons and Fitzsimmons,
2006 p.31); and in any service process, customers are inputs who interact with the service
system. It is important to understand this distinction in a service compared to manufacturing;
thus negating manufacturing’s closed system owing to customer presence in the service
process (Fitzsimmons and Fitzsimmons, 2006).
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Although traditional services such as hotels, catering and housecleaning dominate the
service sector, these are increasingly supplemented by amenities such as banking, insurance,
computing, communication, etc., (Eichengreen and Gupta, 2009). Healthcare is the fastest
growing service among developed and developing countries (Dey et al., 2006). Therefore, it
is important that hospitals provide services that are appropriate to the population’s health
needs (Rechel et al., 2009). Only those consumers who are satisfied with their healthcare
providers will return when they need care again (Otani et al., 2010). Managers need to
understand that even though the process is performed exactly as designed by them; service
quality is low if they do not meet customer requirements. Accordingly, if service
performance does not address individual customer requirements then customers will not use
the service (Sampson, 1999). Assessing healthcare quality and understanding how patients
perceive quality are crucial in such a rapidly changing and increasingly competitive market
(Braunsberger and Gates, 2002). Therefore, meeting patient needs and creating healthcare
standards are imperative to achieving high quality (Ramachandran and Cram, 2005),
consequently identifying and understanding what quality dimensions are important to
customers are fundamental to service quality. Hence, studying healthcare quality is as natural
as it is for any other service. Practitioners and academics are struggling to find an appropriate
healthcare system that satisfies different stakeholders such as patients, providers, practitioners
and insurers. As a result, understanding service quality dimensions has become more
important over the years.
These questions have been debated by academics over three decades (Martinez and Martinez,
2010). There are different service quality definitions in the literature. However, we consider
only two: ‘the outcome of an evaluation process where the consumer compares his
expectations with the service he has received’ (Gronroos, 1984 p.37) and ‘a customer’s
judgement about a product’s excellence or superiority’ (Zeithaml, 1988 p.3). The healthcare
industry has gone through service delivery changes in response to higher service expectations
from patients, technology advancements, superior access to health information through the
internet and digital media, and a holistic approach to health and well-being concerns (Francis,
2010). Although patient opinions are an important tool in healthcare evaluation (Polluste et
al., 2000), healthcare quality has been studied largely from a clinical perspective, excluding
the patient’s service quality perception (Gill and White, 2009). Despite an extensive quality
determinants literature (Badri et al., 2005), quality indicators cannot be determined
adequately using existing service quality measures (Butler et al., 1996) and currently, few
tools exist for assessing and managing healthcare quality (Chow-Chua and Goh, 2002). Pai
and Chary (2013) concluded that researchers need to look for healthcare dimensions rather
than adopting any available instrument, thus highlighting the need for an instrument for
measuring hospital service quality. Hence we propose a conceptual framework to measure
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service quality addressing this gap in the literature to provide academics and practitioners
measurement alternative.
Healthscape
Kotler (1973) introduced the physical environment as an important service experience. Later,
Bitner (1992) took atmospherics a step further by developing a framework that addresses the
physical environment’s effects on consumers in service settings (servicescapes). Hutton and
Richardson (1995) narrowed the topic to healthcare facilities and modified Bitner’s
servicescape framework by combining it with Kotler’s atmospherics (1973), calling it
healthscape. Brady and Cronin (2001) and Raajpoot (2002) found that in different service
industries, customers listed the service environment as a consideration in their service quality
evaluations. Healthcare is a need service, that serves patients who arrive with illness, pain,
anxiety, fear and under stress (Bendapudi et al., 2006). With patients arriving at healthcare
facilities distressed, concerned and anxious in an unfamiliar environment, only worsens their
negative emotions (Lee, 2011). Pai and Chary (2014) highlight healthscape’s influence on
service quality. Therefore, healthcare providers need to understand which healthscape
features affect service quality, to create a healthscape that can satisfy customer need for
comfort, convenience, safety, security, privacy and support. In our conceptual model, this
dimension includes tangible service facilities such as equipment, machinery, signage,
employee appearance or other man-made physical environment.
Personnel
Service delivery occurs during the interaction between employee and customer. During the
service encounter, customer perception is based upon the encounter’s emotional and
intangible elements (Lemmink and Mattsson, 2002; Stauss and Mang, 1999). Thus employee
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attitudes and behaviours can influence customer perceptions (Schneider and Bowen, 1985).
In high contact services, for customers to be happy, employees must be happy (Bitran and
Hoech, 1990). Service-profit chains (S-PC) highlight employee attributes needed to deliver
high service quality (Heskett et al., 1994). Hays and Hill (2006) explain that service
organizations with highly motivated employees enhance service quality. Service
organisations are classified on customer contact and high-contact service industries typically
involve activities in which employees and customers have close and direct interaction for a
prolonged period (Chase, 1981). High contact services must fulfil higher order human needs
to a much larger extent than low contact services (Chase and Tansik, 1983). Hospital services
are high contact services, where personnel play an important role in service evaluation among
patients (Bowen and Schneider, 1985). As the interaction involves interpersonal elements,
patients develop positive emotional responses that lead to positive evaluations (Gabbott and
Hogg, 2000). Service quality is directly related to customer satisfaction and service quality
perceptions (Jayawardhena et al., 2007). Hence, this dimension evaluates courtesy,
competency, friendliness, caring attitude, politeness, mannerisms and staff appearance.
Hospital image
Image is defined as perceptions reflected in the associations held in a consumer’s memory
(Keller, 1993) and is a short-term perception that stakeholders have (Carrillo et al., 2011).
According to the Nordic model, image is emphasized as a filter that influences the perception
of the organisation’s operation (Gronoos, 1984) that externally validates the perceptions
(Zeithaml, 1988). Moreover, corporate image has been identified as an important factor in the
overall service evaluation (Bitner, 1991; Grönroos, 1984). However, intrinsic service
qualities prior to their purchase are relatively difficult to identify (Darby and Karni, 1973;
Zeithaml, 1988); therefore, service provider performance gets harder to evaluate and image
assessment rises in importance (Hansen et al., 2008). A company with a good image is more
likely to stand out in the market place because it draws both repeat customers and trial users
(Connor and Davidson, 1997) and positive image might serve as a proxy for service quality
(Kirmani and Rao, 2000). Consumer’s perceptions are ignored in the literature (Kristensen,
1998). In healthcare services, the hospital’s reputation has to be considered as a service
quality element and accordingly, this dimension includes good doctors, honesty and ethics.
Trustworthiness
Parasuraman et al. (1985) introduced trust, suggesting that customer should be able to trust
service providers, feel safe and be assured that their dealings are confidential. Zeithaml et al.
(2000), in their e-service quality study, categorized security/privacy as the degree to which
customers believe the service is safe from intrusion and that personal information is
protected. Trustworthiness has the greatest impact on overall perceived service quality among
retail grocery businesses (Siu and Chow, 2003). Healthcare is dissimilar to other services in
the manner that ‘patients submit confidentiality and relinquish their privacy (and modesty) to
clinicians’ (Berry and Seltman, 2008 p.11). In healthcare, knowledge control is an important
part of privacy and control includes the decisions about what information is and isn’t given
and what information is shared (Muyeskens, 1982; Ziporyn, 1984). Silvestro (2005)
recognized that health service privacy is important and that maintaining privacy and
confidentiality is important from the patient perspective. Consequently, this dimension deals
with providing medical treatment and maintaining privacy and confidentiality.
2007). Patients cannot judge an employee’s technical competence; i.e., patients have few
skills to evaluate a service’s technical reliability (Vinagre and Neves, 2008), consistent with
Donabedian’s (1988) statement that patients often are in no position to assess technical
quality and they are sensitive to interpersonal relationships. Hence, hospital service quality
judgements are made by the patient based on interpersonal aspects and the manner in which
medical care is delivered. Interpersonal aspects are directly experienced and their evaluation
requires no technical expertise. What service features are offered is as important as how they
are delivered (Rust and Oliver, 1994). Accordingly, this dimension deals with assessing
patient condition, instruction and advice received, and time spent examining the patient.
Communication
Service delivery shapes, to a great extent, customer service perceptions (Bitran and Lojo,
1993). Lehtinen and Lehtinen (1991) recognised the quality arising from an interaction
between provider and customer as one factor affecting service quality. Communication
embraces information transmission between provider and customer; i.e., two-way
communication. Flow is an important characteristic in a relationship (Morgan and Hunt,
1994) and timely communication fosters trust by resolving disputes and aligning perceptions
and expectations (Moorman et al., 1993). Patients’ need for information and a patient-centred
approach often remain unfulfilled (Schattner et al., 2006). Research shows that many medical
service providers tend to communicate in such a manner that reveals their power, authority,
professional detachment and status (Hall et al., 1981; Street and Weimann, 1987). Likewise,
customers do not appreciate rudeness (Gutek et al., 2002). Provider communication style is a
key factor in determining customer satisfaction and in most service situations, a non-
dominating communication style will lead to greater customer satisfaction (Webster and
Sundaram, 2009). In healthcare, patients want to know that communication is occurring
between different parties involved, so this dimension includes information provision,
providing adequate information about ailments and treatments, obtaining information,
updating patient to family members and feelings about interaction with staff.
Relationship
Deciding to deliver a service in relationships or encounters is a strategic choice. The
difference between interaction among customer and service employee who know each other
personally and an interaction between two strangers who never expect to see each other again
represents a fundamental dichotomy in the service industry (Gutek et al., 2002). One
distinguishing characteristics is collaboration (Pai and Chary, 2013); i.e. patient cooperation
during the encounter (answering questions honestly) and afterwards (taking the prescribed
medication) is important for successful treatment (Berry and Bendapudi, 2007). Patients
share the responsibility for their own healthcare with physicians. Human relationships are
complex and the relationship between patient and physician is no exception (Beach and
Roter, 2000). Relationships refer to closeness and strength developed between provider and
customer (Beatty et al., 1996), which includes interpersonally close interactions in which
trust or mutual liking exists (Koerner, 2000). Trust is necessary for a successful patient-
provider relationship and exceeds the level found in most other relationships, as both
participants know relatively little about each other (Davis and Roberts, 2009). A patient-
provider relationship is based on faith, paternalism, family input and mutual understanding
(Balint and Shelton, 1996). Patient-physician relationship was found to be the patient's first
priority (Schattner et al., 2006), highlighting the relationship’s significance. Therefore, this
dimension examines the relationship between patient and staff.
Personalization
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Administrative procedures
Hospital administrative procedures include admission, stay and discharge, which comprise a
nonstop interaction. Similarly, administrative procedures include registration, billing, etc.
Facilitation is essential to core service delivery and consumption, while supporting elements
augment the service but are not necessary to its core (Grönroos, 1990; Lovelock et al., 2001).
One important administrative process is the delay at different stages (Duggirala et al., 2008).
During the whole hospitalisation experience, employees should demonstrate that they care
about their patients and ensure that patients feel safe (Boshoff and Gray, 2004). Therefore,
this dimension includes the appointment, waiting time, error-free records and documentation.
(Karassavidou et al., 2009) (Table I). Hence, items under each dimension were grouped.
There were items that had similar meaning under each dimension; e.g., ‘Excellent companies
will have modern looking equipment’ an item under the tangibles dimension (Raajpoot,
2004), which is similar to the item ‘Hospital has up-to-date equipment’ under tangibles
(Babakus and Mangold, 1992). These two items are similar to ‘Availability of adequate and
up-to-date technological capability in the hospital (e.g., diagnostic facilities like CT scan,
MRI scans, X-Ray) to serve patients more effectively’, an item under infrastructure
(Duggirala et al. 2008). In such cases only one item is considered from the pool. Thus, our
instrument was designed to measure nine dimensions (Appendix 1). Our instrument is based
on a method adopted by Badri et al., (2005) who designed a patient satisfaction instrument.
The procedure includes generating items for assessing outpatient/inpatient service quality
through an extensive literature review and grouping similar items. We had initially classified
them into ten dimensions that included support (three items), which measured contribution to
society. Each dimension defined an important service quality aspect resulting in a final
instrument for measuring hospital service quality (Pai and Chary, 2012).
To establish content validity, we adopted the Badri et al. (2008) method; i.e., items
were critically and extensively reviewed by academics and students, who found two items
under support: ‘The hospital runs various programs for patients to support different societal
sections’ and ‘The hospital provides medical services with nominal cost to needy patients’ be
grouped under ‘hospital image’ while ‘The hospital provides patients with services beyond
medical treatment’ should be grouped under ‘trustworthiness’. Hence, after reclassifying
certain items, they were subjected to pre-test involving experts. Following the pre-test, the
questionnaire was distributed to patients who were asked to rate all questionnaire items by
assigning a score on a ten-point scale (1, not relevant at all and 10, very relevant) and that
items were quite relevant or very relevant to the scale to which they were assigned, thus
establishing content validity (Badri et al., 2008). Additionally, face validity was tested by
sending the refined questionnaire to several medical consultants asking for their views on the
instrument (Badri et al., 2008). Later, face validity was assessed by asking other medical
professionals for views on the instrument. The questionnaire was deemed a useful service
quality measure and covered important aspects.
However, a score 7.0 to 8.0 is recommended for most standard documents. Our Flesch-
Kincaid Grade Level was 7.0, which is acceptable.
Scores
In the healthcare quality measurement literature, scales range from four- to ten-point (Pai and
Chary, 2013). The scaling issues need to be addressed in cross-cultural research, as different
cultures react differently to scaling. A five-point or a seven-point scale may make no
difference in the United States, but could make a significant difference in other countries
(Sekaran and Bougie, 2010). Likewise, cultural practices may condition participants to a
standard metric; e.g., a 10-point scale in Italy (Cooper et al., 2012). A five-point format
reduces respondents’ frustrations and also increases the response rate and response quality
(Lam, 1997). A five-point scale is the easiest to complete and item omission is less frequent
(Nagata et al., 1996). Hence, a balanced rating scale with equal categories above and below
the midpoint was used; each anchored with verbal statements: ‘strongly disagree’, ‘disagree’,
‘neither agree or disagree’, ‘agree’, ‘strongly agree’.
Discussion
Appraising the proposed framework
The nine dimensions that we propose have been used in previous studies but were called
differently; e.g., healthscape as tangibles, surroundings, physical environment, while
personnel has been referred to as staff professionalism, health personnel practices and
conduct. The dimensions we propose and their typology in previous studies is shown in Table
I.
Table I here.
Although there has been continuous debate about SERVQUAL, which is criticized for
various reasons, it has support; Reynoso and Moore (1995) suggest that the instrument is
somewhat applicable and researchers should keep the more generic SERVQUAL dimensions
before adding others that are particular to a specific situation. Carman (1990) suggests
measuring each function separately within a multifaceted service environment with items that
are similar to SERVQUAL. Hence, associating our hospital service quality dimensions with
Parasuraman et al. (1985, 1988), we find that, other than relationship, dimensions can be
equated to Parasuraman et al. (1985,1988) (Table II). Schneider and White (2004, p.40) opine
that ‘it is important to capture the service quality issues for a particular organisation or
industry than it is to slavishly rely on the published version of SERVQUAL …’.
Table II here.
SERVQUAL (Parasuraman et al., 1988), the generic scale for measuring service quality, with
five dimensions, evolved from Parasuraman et al. (1985), which originally had ten
dimensions. Thus, our nine dimensions are universal to healthcare service quality and fine-
tuning may be done based on the hospital settings. The hospitals can be any type: private,
teaching and public. Two new instruments, PRIVHEALTHQUAL (Ramsaran-Fowdar, 2008)
for private settings and PubHosQual (Aagja and Garg, 2010) for public settings have been
developed for measuring these service quality contexts. Hence, comparing our hospital
service quality dimensions with those instruments, we discover that the relationship
dimension has neither been assessed among PubHosQual (Aagja and Garg, 2010) nor
PRIVHEALTHQUAL (Ramsaran-Fowdar, 2008) (Table III).
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Conclusion
Quality perceptions have a strong influence on patients desire to use health services (Bellou
and Thanopoulos, 2006). If the system cannot be trusted to guarantee threshold quality then it
will remain underutilized, bypassed, used only for minor ailments or a last resort (Andaleeb,
2001). Moreover, developing country patients are now willing to go to private hospitals and
even travel abroad to a developed country’s hospital when they feel unsafe about healthcare
quality in their public hospitals (Bellou and Thanopoulos, 2006). Therefore, healthcare
quality management practices are important (Van and Koch, 2009), owing to the sector’s
overall influence on the economy (Burns et al., 2008) and the phenomenal change in
hospitals operating globally (Hensher et al., 1999) amounting to rising competition.
Henceforth, healthcare manager knowledge about service quality factors is an important
element in continuous quality improvement. Moreover, rising customer knowledge and
technology improvement mean that quality aspects and factors have changed over time.
Healthcare service quality is difficult to evaluate as credence values are high. Although, there
is a debate about how healthcare should be assessed, authors feel patient perceptions are
valuable healthcare quality indicators. Patient assessment becomes relevant with the patient
centric approach in healthcare. Thus, the proposed model provides insights so that managers
and academics can evaluate healthcare service quality. Our framework needs an empirical
assessment and calls for studies using these dimensions to affirm the conceptual framework
we propose.
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2008; Padma et al., 2009; Rao et al., 2006); Physical environment and
infrastructure (Karassavidou et al., 2009); Facility Quality (Mostafa, 2005);
Facilities (Raposo et al., 2009); Amenities/Environment (Rose et al., 2004);
Tangibility/Image (Ramsaran – Fowdar, 2008);
Personnel Professional competence and interpersonal skills for both physicians and
nurses (Angelopoulou et al., 1998); Professionalism of staff (Arasli et al.,
2008); Health personnel practices and conduct (Baltussen et al., 2002);
Professional and technical quality (Camilleri and Callaghan, 1998); Physician
concern and staff concern (Choi et al., 2005); Personal Quality (Duggirala et
al., 2008; Padma et al., 2009); Human aspect (Karassavidou et al., 2009);
Human performance quality (Mostafa, 2005); Human personnel practices and
conduct (Narang, 2010); Interpersonal (Rose et al., 2004)
Hospital Image First Impression (Sower et al., 2001); Image (Zifko-Baliga et al., 1997);
Hospital Image (Padma et al., 2009)
Trustworthiness Dependability (Headley and Miller, 1993); Credibility and security (Taner and
Antony, 2006); Dignity (Tomes and Ng, 1995); Social Support (Rose et al.,
2004); Privacy during visit (Hansen et al., 2008); Social responsibility
(Duggirala et al., 2008; Sureshchandar et al., 2002); Trustworthiness of the
Hospital (Padma et al., 2009)
Clinical Care Process Characteristics (Amira, 2008); Healthcare delivery (Narang, 2010);
Process Medical Care (Raposo et al., 2009); Understanding of illness (Tomes and Ng,
1995); Convenience of care process (Choi et al., 2005); Core service
(Sureshchandar et al., 2002); Process of Clinical Care (Padma et al., 2009)
Communication Information (Sower et al., 2001); Interactive communication (Zifko-Baliga et
al., 1997); Communication (Akter et al., 2008; Taner and Antony, 2006)
Relationship Relationship of mutual respect (Tomes and Ng, 1995); Relationships (Arasli et
al., 2008)
Personalization Service personalization (Camilleri and Callaghan, 1998)
Administrative Administrative services offered (Angelopoulou et al., 1998); Administrative
Procedures responsiveness (Jabnoun and Chakar, 2003); Adminstrative process (Duggirala
et al., 2008); Administrative Procedures (Padma et al., 2009); Administrative
quality (Dagger et al., 2007); Accessibility (Gross and Nirel, 1998);
Access/Waiting time (Rose et al., 2004); Operational care quality (D’Souza
and Sequeira, 2012)
Table II: Hospital service quality dimensions: a comparison with established scale
customer
Administrative Procedures Access Empathy and Reliability
Table III: Hospital service quality dimensions: comparing public and private hospital
instruments
Healthscape
Personnel
Hospital Image
Trustworthiness
Communication
Relationship
Personalisation
Administrative Procedure
Appendix 1: Dimensions
Healthscape
1. Modern and up-to-date equipment (e.g., CT and MRI, patient information and billing) to
serve patients more effectively.
2. Physical facilities are visually appealing.
3. Adequacy of different facilities (e.g., wards, beds, OT, ICU).
4. Cleanliness (Clean toilets, clean rooms and wards).
5. Infection-free environment/treatment provided by the hospital.
6. Hospital staff follow adequate hygienic care and procedures (e.g. wearing gloves).
7. The employees of hospital are dressed neatly.
8. Drugs availability.
9. Comfortable ambient conditions with proper lighting.
10. The hospital has an appealing atmosphere.
11. The hospital has clean rooms without foul smell.
12. There are sufficient waiting areas for the patients and patient party.
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Personalization
1. I always get personalized attention from the staff at the hospital.
2. Hospital staff treat me as a human being and not just a patient.
3. The doctor calls me by my name while addressing me.
Administrative Procedures
1. Waiting time to consult the doctors is minimal.
2. Provides right patient services the first time, every time.
3. Reasonable waiting time spent for diagnostic test and treatments.
4. Time between successive processes is minimum.
5. The process for setting up the appointment was simple and easy.
6. Appointment at the hospital runs on time.
7. Hospital records and documentation are error free.
8. The interaction among the departments within the hospital is well managed.
9. I believe the hospital is well-managed.