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ACCA Applied Skills · Performance Management · Performance analysis in private sector, public sector and not-for-profit organisations

A hospital trust measures the quality of its outpatient service using non-financial indicators. Which of the following is the best example of an indicator of service quality as opposed to economy or efficiency?

The percentage of patients reporting satisfaction with treatment is the quality indicator, because it captures how users experience the service. The other options measure cost control (economy) or output per resource used (efficiency), not the quality of the service delivered.

  1. APercentage of patients reporting they were satisfied with their treatmentCorrect
  2. BCost per outpatient appointment compared with budget
  3. CNumber of appointments handled per nurse per day
  4. DTotal spending on medical supplies in the period

Explanation

Patient satisfaction reflects the quality of the service as experienced by users, so it is a quality (effectiveness) indicator. Cost per appointment and spending on supplies relate to economy, while appointments per nurse relates to efficiency, so these are not quality measures.

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