The Relationship between Cost System Functionality, Management Accounting Practices, and Hospital Performance

Figure 1

Correlation levels among defined constructs in the research model(Source: Author's own elaboration)

	Size	CL	Calc	MAP	Per
Hospital size – Size	1
The level of computerization – CL	0.16	1
The quality of calculation– Calc	0.49*	0.45*	1
Management accounting practices – MAP	0.17	0.29**	0.45*	1
Hospital performance – Per	0.22	0.44*	0.66*	0.79*	1

Results of multiple regression analysis (Source: Author's own elaboration)

	Factor I Calc	Factor II MAP	Factor III Per
Education of manager – Edu	−	−0.34*	−
Hospital size – Size	0.44*	−	−
The level of computerization – CL	0.38*	−	−
The quality of calculation process – Calc	−	0.46*	0.38*
Management accounting practices – MAP	−	−	0.62*
Determination rate – R2	0.37	0.30	0.73
F-statistics	22.81*	17.17*	106.5*

The list of observable variables and constructs in the research model(Source: Author's own elaboration: Kludacz-Alessandri, 2017b)

Observable variables	Constructs
Degree of utilization of IT technologies in administrative part of a hospital	Level of computerization in a hospital (CL)
Degree of utilization of IT technologies in medical part of a hospital
Degree of IT systems integration
Tracing direct material costs (medicines, medical products) to the patients and medical procedures	Quality of cost calculation (Calc)
Tracing other direct costs (e.g., labor) to the patients and medical procedures
Allocation of the costs of medical procedures to the individual patients
Allocation of the cost of man-days to the individual patients
Planning and budgeting	Management accounting practices (MAP)
Cost control
Processes improvement
Performance measurement
Analysis of resource efficiency
Contract negotiations
Profitability analysis
Change in the structure of services
Decisions on the purchase of medical equipment
Profitability	Hospital performance(HP)
Cost optimization
Efficient utilization of resources
Patient satisfaction
Medical service quality