J Clin Res Gov 3 (2014) 92-98 92 Swedish Science Pioneers Developing World Journal Series Journal of Clinical Research & Governance www.jcrg.sciencepub.se Research Article Development of Financial Indicators of Hospital Performance Ali Janati a , Samaneh Valizadeh b , Mohammad Asghari-Jafarabadi c a: Tabriz Health Services Management Research Center, Department of Health Services Management, School of Management and Medical Informatics, Tabriz University of Medical Sciences, Tabriz, Iran b: Department of Health Services Management, School of Management and Medical Informatics, Tabriz University of Medical Sciences, Tabriz, Iran c: Department of Statistics and Epidemiology, School of Health, Tabriz University of Medical Sciences, Tabriz, Iran Correspondence Samaneh Valizadeh Department of Health Services Management, School of Management and Medical Informatics, Tabriz University of Medical Sciences, Tabriz, Iran Tell: +98411-3352291 Email: samanehvalizadeh@yahoo.com Keywords: Financial indicator Financial performance Performance Appraisal Hospital Delphi Technique Iran Received: 2014-02-13 Accepted: 2014-04-08 DOI: 10.13183/jcrg.v3i0.121 Abstract Purpose:To develop an appropriate set of financial performance indicators for use in Iranian hospitals. Methods:This study consists of three steps. At the first step, using a literature review and three focus group discussions, the financial indicators that had been deemed to be important measures of hospital financial performance were identified. As the second step, a multidisciplinary panel of experts rated the indicators via two- round Delphi technique. Through the third step, the panel assessed the indicators at one consensus meeting. Results:Among 102 indicators identified at the first step, 79 indicators were selected in the Delphi technique. In the paŶel coŶseŶsus ŵeetiŶg, the positiǀe coŶseŶsus ǁas achieǀed oŶ the ϯϰ iŶdicators. UpoŶ the experts’ opiŶioŶ, eight indicators were added after few modifications and 13 new indicators were developed. Finally, 55 indicators were selected as financial indicators for assessing the hospital performance. Conclusion:This study developed a set of financial indicators for Iranian hospitals, that helps hospital managers to identify hospital financial trends over a period of time and compare their performance with peer hospitals. The information derived from these indicators, may guide plans and decisions to improve hospital financial performance. ©2014 Swedish Science Pioneers, All rights reserved. Introduction Today’s healthcare providers face a complex environment that is changing rapidly. The rapid growth and change in technology, the aging population, increasing of chronic diseases and finally the rising healthcare costs causes serious financial challenges for healthcare providers. In order to deal with these challenges, healthcare organizations require sound financial management practices specifically monitoring their financial performance to be proactively able to overcome the financial distresses and efficiently and effectively achieve their goals ]1-5[. On the other hand, patient’s belief about the service quality is positively associated with hospital’s financial performance ]6[. The literature, acknowledge that even if non-profit hospitals’ objective is not the earning profit, they should consider financial variables as essential elements to accomplish their missions ]5, 6[. Hospital managers need the valid financial measures to determine their current financial condition and plan to improve their performance ]5[. Also, the recent trend toward using financial indicators for hospital executives evaluating is noteworthy ]6[. Thus, using financial indicators for assessing hospitals’ performance has become popular ]5, 7, 8[.