Performance Evaluation in Hospitals: An Investigation on the Effects of the Performance Based Payment System in Research and Practice Hospital of Kocaeli University

Performance evaluation has vital importance for businesses to maintain their activities effectively. An important part of performance evaluation is the performance measurement of employees. By measuring contribution of personal performance, people can see their individual contribution to the performance of the institution as a whole; they perceive their work and can enhance their performance by sensing what is expected of them in the institution. In this study, the effects of performance-based payment system in Kocaeli University Research and Practice Hospital will be analyzed by comparing data related to medical examinations, operations and their revenues during Feb-June 2011 period, in terms of performance individual, departmental and institutional level, retroactively with those of Feb-June of 2009 and 2010 periods. Although the number of examination and the surgery for each faculty member increased significantly, their revenues were not raised at the same pace. Revenues of Faculty members who operated and examined privately in previous system declined significantly in the performance-based payment system.