Explaining hospital performance via the cube one framework

Purpose – The purpose of this paper is to introduce a relatively new theoretical perspective – the Cube One framework – which along with the Cube One Input-Output model provide a conceptual explanation of overall hospital performance. Further, this framework provides information pertinent to organizational improvement. Design/methodology/approach – Multiple sources of data, including the US Department of Health and Human Services’ Centers for Medicare & Medicaid Services (CMS) patient satisfaction ratings, the “US News & World Report’s Best Hospitals” (disaggregated) ratings, the American Hospital Directory efficiency metrics, and Glassdoor employee satisfaction ratings, were used to test five hypotheses. Findings – Three sets of capabilities: patient-, employee-, and efficiency-related were positively associated with hospital performance. The model explained 38 percent of the variance in hospital performance. Practical implications – By adopting a multi-disciplinary, three-dimensional approach, the framework allows hospital leadership to diagnose areas for improving overall performance. Social implications – Hospitals have divergent stakeholders such as patients, patient’s families, employees, government agencies, insurance companies, administrators, boards of directors, and the community. Management capabilities regarding patients, employees, and the organization itself are crucial to the success of hospitals and all who depend on them. Originality/value – By utilizing a three-dimensional approach, the Cube One framework views performance from multiple perspectives.