Market factors related to hospitals’ patient satisfaction ratings

Abstract

Patient satisfaction is an important dimension of care that has been linked to improved clinical outcomes and increased compliance as well as organizational success. The passage of the Patient Protection and Affordable Care Act included rules that incentivize hospitals to improve patient satisfaction by offering increased reimbursements. In this analysis, three data sets are used to retrospectively examine the relationship between environmental market factors and patient satisfaction. We find that per capita income within the hospital’s catchment area, competition, metro status, and availability of general and specialty practitioners are significantly associated with hospitals’ patient satisfaction levels. In a new era of pay-for-performance and increased competition for scarce resources, hospitals must closely monitor and respond to external forces. One strategy for overcoming a turbulent external environment may be to focus on patient satisfaction.