Public hospital financial performance and salary incentive mechanism: An exploratory sequential mixed method design

Abstract

This study analyzed the relationship between financial performance and salary incentive mechanisms in public hospitals across 30 provinces in China from 2014 to 2018 using an explanatory sequential mixed methods approach. Quantitative research revealed significant changes in medical revenue, net income, and drug cost proportions based on hospital factors such as patient volume, operation rates, and length of stay. These factors also had a major impact on wage components, such as post-salary, scale-salary, and performance subsidies. Qualitative data validated the findings, demonstrating that present incentive structures favor hospitals with high patient traffic and surgery rates, while others confront financial and operational issues. The study emphasizes that in order to increase hospital efficiency and employee happiness, incentive structures must be smart and well-balanced.