A Comparison of Service Quality Between Private and Public Hospitals in Thailand
A Comparison of Service Quality Between Private and Public Hospitals in Thailand
A Comparison of Service Quality Between Private and Public Hospitals in Thailand
1. Introduction
Quality has become important for customers when deciding on a service or product and it has been considered as
a strategic advantage for organizations to gain and maintain success in the business world (Irfan & Ijaz, 2011).
Services are intangible and difficult to measure, so service quality depends on customer perceptions and
expectations. The healthcare sector today has a highly competitive. The perceptions and expectations of patients
are considered to be the major indicator to assess the service quality of healthcare organization (Cronin & Taylor,
1992; Irfan & Ijaz, 2011) and quality of service delivered to the patients should meet or exceed their perceptions
and expectations (Parasuraman, Zeithaml & Berry, 1985, 1988; Zeithaml, Berry & Parasuraman, 1993).
Hospitals in Thailand are the part (one) of healthcare sector and in order to prepare for Asean Economic
Community (AEC) membership (circa 2015) and to support the government policy to create a medical hub of
Asia., service quality will become a key factor. Presently, the majority of both the private and public hospitals in
Thailand are to gearing up for likely increased competition by enhancing both service quality and medical staff
quality. The main purpose of this study was to compare the difference in service quality between the public and
private hospitals in Thailand to determine the readiness to compete in this expanding Asian healthcare
marketplace. The paper proceeds by first reviewing the related literature, followed by the methodology used, the
study findings, and finally, a discussion of the results and conclusions
2. Literature Review
Service quality
Service quality is defined as the discrepancy between customer’s perceptions of services offered by a company
and their expectations about offering services of the company. The customers’ expectations are derived from their
perception of the ideal care standards of their previous experiences in the use of services. According to Grönroos
(2001), service quality is the difference between customer expectations and perceptions as it is being received by
the customer (Parasuraman et al., 1988; Irfan & Ijaz, 2011).
Thus it is necessary for healthcare providers to monitor how well the customers’ expectations have been met after
delivering the services (Zarei, Arab, Froushani, Rashidian, & Tabatabaei, 2012). Previous researchers developed
various conceptualizations for service quality including Grönroos (1984) who identified service quality’s two
dimensions namely functional quality—how the service was performed and technical quality— the actual
outcome of the service that can be objectively measured.
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The SERVQUAL scale contained 22 pairs of items spanning across five dimensions covering key issues of
service quality. It comprises two sets of similar statements; the first is a customer expectations measure (E) and
the second is a measure of customer perceptions as to the actual service delivered by the provider (P). The
instrument measures the quality as the difference between expectations and perceptions (E - P). This tool has been
widely applied by researchers in a diversity of service settings, including hospitals to assess the difference in
service quality between the public and private hospitals (Andaleeb, 2000; Arasli, Ekiz & Katircioglu, 2008; Irfan
& Ijaz, 2011; Polsa et al., 2011; Taner & Antony, 2006)
Several studies to assess service quality have been undertaken in both the private and public hospital sectors in
various countries. Andaleeb (2000) studied on private and public hospitals in urban Bangladesh. The study found
that the private hospitals provide better services than public hospitals on responsiveness, community, discipline
and assurance (medical procedures), but the both groups offered poor evaluations regarding rooms, skills of the
staff and general professionalism.
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(Arasli, Ekiz and Katircioglu (2008) studied service quality in public and private hospitals in Northern Cyprus
finding that the private hospitals were perceived better service than the public hospitals concerning the physical
quality of equipment and facilities), quality of the service provide by doctors and nurses, and facility-related
activities, i.e., building infrastructure and new equipment. Irfan and Ijaz (2011) studied hospitals in Pakistan,
where the results of study indicated that private hospitals were delivering better service quality to their patients as
compared to public hospitals, especially on the dimensions of empathy; tangibles assurance, responsiveness .
Polsa et al. (2011) examined the perceived quality of private and public hospital services in Nigeria. The study
results showed that service in private hospitals was considered to be superior to those of public hospitals,
including having up-to-date environment, appearance of hospital employees, accurate storage of records, exact
delivery of services, employees providing trust, politeness of employees, specialized knowledge and personal
attention of hospital. Taner and Antony (2006) studied the differences in service quality between public and
private hospitals in Turkey, finding that patients in the private hospitals were more satisfied regarding the
assurance dimension, including doctors, nurses and supportive services than their counterparts in the public
hospital.
3. Methodology
Method
A cross-sectional study was conducted between February and March 2012 in Bangkok, the capital of Thailand.
Survey instrument
The study questionnaire was composed of 2 parts; the first part assessed demographic characteristics of the
hospital patient, such as gender, age, income and education. In the second part, the SERVQUAL questionnaire
was used to assess the patients’ expectations and perceptions of service quality that included 21 items across 5
dimensions: tangibles (5 items), reliability (5 items), responsiveness (3 items), assurance (4 items) and empathy (4
items). The SERVQUAL scale was translated into the Thai and back-translated into English from Parasuraman et
al. (1991).
A 7-point Likert-type scale was used, ranging from strongly disagree (1) to strongly agree (7) to access the level
of expectations and perceptions of patient service quality. The reliability of the scale was tested using Cronbach’s
alpha. The alpha values obtained were 0.91 and 0.93 for expectation scores and perception scores respectively.
These results indicate good internal consistency (Arasli et al., 2008) as Cronbach Alpha values greater than 0.70
are deemed acceptable (Nunnally, 1978).
A self-administrated questionnaire was administered to collect empirical data from patients from hospitals located
in Thailand. According to the statistics issued by the Ministry of Public Health of Thailand (2010); total number
of patients was 37,463,060. Thus, the sample size was determined using the following formula of Yamane (1967).
n= N / Ne2 + 1 ,
Here; N= 37,463,060, e2 = 0.05
n = 339.97 ≈ 400
The sample size of 400 was chosen because other scale developers in marketing have also drawn similar sized
samples: Arasli et al. (2008); Rohini and Mahadevappa (2006). In order to collect quantitative data for the study, a
total of 400 questionnaires were printed and distributed for the purpose of data analysis. A total of 10 hospitals
were selected as part of the sampling as they were deemed to be part of the medical hub of Asia. A convenience
sampling method was followed in select individual patients and the patients were assured that their responses
would be kept confidential.
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The demographic distribution of the outpatients indicated the following: Gender— 62.5% were female;
education-- 43% had bachelor degree; and income -- 51.8% had income of 30,000 baht or higher. In terms of
ages-- 33% were 51 years or higher, followed by 31 to 40 years (24.8%), 41 to 50 years (23.5%), 21 to30 years
(17.3%), and lower than 21 years (1.5%).
Ethics
This study was approved by the hospital ethics committee and the hospital administrative officer
4. Results
The SPSS 17.0 for Windows was used to analyze data. The mean scores for the expectations and perceptions of
the five dimensions are presented in Table1to 5 for both public and private hospitals with the mean service quality
gaps score calculated using Service quality (SQ) = Perception (P) – Expectation (E)and results of service quality
between public and private hospitals differences on the five service quality dimensions. The results are shown in
Table 1 to 6 as follows:
4.1 Tangibles
Expectations: Table 1 shows the mean expectation scores for all 5 items representing the tangibles dimension for
private hospitals were above 6.30 –ranging from the highest 6.68 (2 items) for ―up-to-date equipment‖ and
―convenient timing of services offered to patients‖ to the lowest 6.37 for ―visually appealing physical facilities at
the hospital‖. On the other hand, the mean expectation scores for all items in public hospitals were above 5.50 –
ranging from the highest 6.34 for ―up –to-date equipment‖ to the lowest 5.58 for ―visually appealing physical
facilities at the hospital‖.
Table 1
Mean expectation (E), perception (P), perception, gap scores and group differences (gap score) tests of tangibles
Mean Values
F-tests
Dimension/items E P Gap score
Tangibles Publi Privat Publi Privat Publi Privat F-value Sig
c e c e c e
Up-to-date equipment 6.34 6.68 6.09 6.57 -0.25 -0.12 34.40 0.00*
Appearance of hospital personnel 6.28 6.55 5.89 6.62 -0.39 0.07 16.38 0.00*
Convenient timing of services for 5.99 6.68 5.84 6.68 -0.15 0.00 13.70 0.00*
patients
Visually appealing hospital 5.81 6.45 5.36 6.50 -0.45 0.05 10.36 0.18
environment
Visually appealing physical facilities 5.58 6.37 4.70 6.00 -0.87 -0.36 6.94 0.19
at hospital
Perceptions: the mean perception scores for private hospitals were above 5.90 –ranging from the highest 6.09 for
―convenient timing of services offered to patients‖ to the lowest 6.00 for ―visually appealing physical facilities at
the hospital‖. On the other hand, the mean perception scores for all items in public hospitals were above 4.45 –
ranging from the highest 6.09 for ―up to date equipment‖ to the lowest 4.70 for item of ―visually appealing
physical facilities at the hospital‖.
Gap scores: the mean gap score values are positive meaning that expectations fall short of perceptions on three
items in private hospitals. The gap score of both the private and public hospitals was the largest for ―visually
appealing physical facilities at the hospital‖, i.e., -0.36 and -0.87 respectively. The results for items measuring
tangibles indicate that three items showed a significant difference revealing that private hospitals provided better
―up-to-date equipment‖; ―appearance of hospital personnel‖; and ―convenient timing of services offered to
patients‖ as compared to the public hospitals.
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4.2 Reliability
Table 2
Mean expectation (E), perception (P), perception, gap scores and group differences (gap score) tests of reliability
Mean Values
F-tests
Dimension/items E P Gap score
Reliability Publi Privat Publi Privat Publi Privat F-value Sig
c e c e c e
Performance of services prompt every 5.89 6.62 5.38 6.33 -0.55 -0.33 17.50 0.00*
time
Solving problems 5.88 6.58 5.34 6.30 -0.53 -0.36 13.46 0.05*
Performance of services right the first 5.80 6.55 5.28 6.19 -0.50 -0.25 9.53 0.44
time
Inform about operating hours 5.66 6.51 4.44 5.65 -1.12 -0.68 6.90 0.25
Hospital’s service within agreed time 5.56 6.33 4.37 5.99 -1.29 -0.53 0.07 0.17
Expectations: Table 2 indicates that the mean expectation score for private hospitals were above 6.30 –ranging
from the highest 6.62 to the lowest 6.33. On the other hand, the mean expectation scores for public hospitals were
above 5.50 –ranging from the highest 5.89 to the lowest 5.56.
Perceptions: the mean perception scores for private hospitals were above 5.90 –ranging from the highest 6.33 for
―performance of services prompt every time‖ to the lowest 5.65 for ―informing patients about operating hours‖.
On the other hand, perception mean scores for public hospitals were above 4.30 –ranging from the highest 5.38
for ―performance of services promptly every time‖ to the lowest 4.37 for ―hospital’s service performed within
agreed time‖ item.
Gap scores: the largest mean gap score in private hospitals was -0.68 for ―informing patients about operating
hours‖. While the largest mean gap scores in public hospitals was -1.29 for ―hospital’s service performed within
agreed time‖. In testing for results of each item measuring reliability, two items had significant differences in the
case of private hospitals when it came to ―performance of services promptly every time‖; and ―solving problems‖
as compared to public hospitals.
4.3 Responsiveness
Table 3
Mean expectation (E), perception (P), perception, gap scores and group differences (gap score) tests of
responsiveness
Mean Values
F-tests
Dimension/items E P Gap score
Responsiveness Publi Priva Publi Priva Publi Priva F- Sig
c te c te c te value
Willingness of personnel to provide 5.88 6.53 4.97 6.34 -0.91 -0.18 17.96 0.00*
service
Readiness of personnel to provide 5.87 6.37 4.97 6.22 -0.90 -0.12 10.11 0.00*
service
Fast and efficient service of 5.70 6.32 4.58 5.86 -1.13 -0.47 3.61 0.66
personnel
Expectations: Table 3 indicates that the mean expectation scores for private hospitals were above 6.30 –ranging
from the highest 6.53 to the lowest 6.32 . On the other hand, the mean expectation scores for public hospitals were
above 5.50 –ranging from the highest 5.88 to the lowest 5.70.
Perceptions: the mean perception scores for private hospitals were above 5.80 –ranging from the highest 6.34 for
―willingness of personnel to provide service‖ to the lowest 5.86 for ―fast and efficient service of personnel‖.
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On the other hand, the mean perception scores for all 3-items in public hospitals were above 4.50 –ranging from
the highest 4.97 (2 items) for ―willingness of personnel to provide service‖ and ―readiness of personnel to provide
service‖ to the lowest 4.58 for ―fast and efficient service of personnel‖.
Gap scores: the largest mean gap scores of both the private and public hospitals were -0.47 and -1.13 respectively
for ―fast and efficient service of personnel‖. In testing for results for each item measuring responsiveness found
that two items had significant difference when it came to private hospitals ―willingness of personnel to provide
service‖ and ―readiness of personnel to provide service‖ as compared to public hospitals.
4.4 Assurance
Table 4
Mean expectation (E), perception (P), perception, gap scores and group differences (gap score) tests of assurance
Mean Values
F-tests
Dimension/items E P Gap score
Assurance Publi Privat Publi Privat Publi Privat F-value Sig
c e c e c e
Personality and experience of hospital 6.34 6.57 5.86 6.62 -0.23 -0.04 22.10 0.00*
personnel
Hospital personnel have knowledge 6.09 6.48 5.69 6.63 -0.43 0.15 21.01 0.04*
Sense of trust personnel provide 6.04 6.53 5.63 6.42 -0.46 -0.11 19.81 0.00*
Politeness of hospital personnel 5.92 6.66 5.62 6.53 -0.48 -0.13 8.54 0.00*
Expectations: Table 4 shows that the mean expectation scores for private hospitals on the assurance dimension
were above 6.40 –ranging from the highest 6.66 for ―politeness of hospital personnel‖ to the lowest 6.48 for
―hospital personnel have knowledge‖. On the other hand, the mean expectation values for all items in public
hospitals were above 5.90 –ranging from the highest 6.34 for ―personality and experience of hospital personnel‖
to the lowest 5.92 for ―politeness of hospital personnel‖.
Perceptions: the mean perceptions scores for private hospitals were above 6.40 –ranging from the highest 6.63 for
―hospital personnel have knowledge‖ to the lowest 6.42 for ―sense of trust personnel provide‖. On the other hand,
the mean perception values for all 4-items in public hospitals were above 5.60 –ranging from the highest 5.86 for
―personality and experience of hospital personnel‖ to the lowest 5.62 for ―politeness of hospital personnel‖.
Gap scores: the results show some positive values, meaning that expectations fall short of perceptions, e.g., on the
item in private hospitals for ―hospital personnel have knowledge‖. The largest mean gap score of both the private
and public hospitals was -0.13 and -0.48 respectively for ―politeness of hospital personnel‖ item. The results in
testing for each item measuring assurance found that all 4 items had significant difference when it came to private
hospitals as compared to public hospitals.
4.5 Empathy
Table 5
Mean expectation (E), perception (P), gap scores and group differences (gap score) tests of empathy
Mean Values
F-tests
Dimension/items E P Gap score
Empathy Publi Privat Publi Privat Publi Privat F-value Sig
c e c e c e
Understand specific needs 5.91 6.54 5.16 6.17 -0.57 -0.34 10.23 0.03*
Follow up patients individually 5.70 6.56 5.13 6.22 -0.64 -0.51 9.59 0.00*
Take the patients’ best interests to 5.69 6.46 5.06 5.95 -0.72 -0.45 4.91 0.04*
heart
Giving personal attention 5.36 6.45 4.64 6.01 -0.75 -0.37 1.27 0.29
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Expectations: Table 5 shows the expectation mean scores for all 4- items representing the empathy dimension for
private hospitals which were above 6.40 –ranging from the highest 6.56 for ―follow up patients individually‖ to
the lowest 6.45 for ―giving personal attention‖. On the other hand, the means expectation values for 4-all items in
public hospitals were above 5.30 –ranging from the highest 5.91 for ―understand specific needs‖ to the lowest
5.36 for ―giving personal attention‖.
Perceptions: the mean perception values for all 4-items in the perception score for private hospitals were above
5.90 –ranging from the highest 6.22 for ―follow up patients individually‖ to the lowest 5.95 for ―take the patients’
best interests to heart‖. On the other hand, the mean perception values for all 4-items in public hospitals were
above 4.60 –ranging from the highest 5.16 for ―understand specific needs‖ to the lowest 4.64 for ―giving personal
attention‖ item.
Gap scores: the largest mean gap score in private hospitals was -0.51 for ―follow up patients individually‖ item,
while the largest mean gap score in public hospitals was -0.75 for ―giving personal attention‖. The results in
testing for each item measuring empathy found three of the four items showed significant difference for private
hospitals when compared to public hospitals.
Table 6
Mean expectation (E), perception (P), gap scores and group differences (gap score) tests of overall service quality
Mean Values
F-tests
Dimension/items E P Gap score
Publi Priva Publi Priva Publi Priva F- Sig
c te c te c te value
Overall service quality 5.88 6.50 5.21 6.27 -0.66 -0.24 39.99 0.00*
Tangibles 6.07 6.54 5.58 6.47 -0.49 -0.07 40.25 0.00*
Reliability 5.76 6.52 4.96 6.09 -0.80 -0.43 40.17 0.00*
Responsiveness 5.81 6.40 4.84 6.14 -0.98 -0.25 19.23 0.00*
Assurance 6.09 6.56 5.70 6.55 -0.40 -0.01 78.70 0.00*
Empathy 5.66 6.50 5.00 6.09 -0.67 -0.42 21.62 0.00*
Expectations: Table 6 shows that the overall mean values of service quality expectations for the private and public
hospitals were 6.50 and 5.88 respectively. Among the five dimensions, the private hospitals’ expectation was
highest for assurance (6.56); followed by tangibles (6.54), reliability (6.52), empathy (6.50) and responsiveness
(6.40). On the other hand, mean values for public hospitals were the highest for assurance (6.09); followed by
tangibles (6.07), responsiveness (5.81), reliability (5.76), and the lowest for empathy (5.66).
Perceptions: the overall mean values of service quality perceptions for the private and public hospitals were 6.27
and 5.21 respectively. Among the five dimensions, the private hospitals’ expectation mean values were highest
for assurance (6.55); followed by tangibles (6.47), responsiveness (6.14) reliability (6.09), and empathy (6.09).
On the other hand, mean perception values for public hospitals were highest for tangibles (5.58); followed by
assurance (5.70), empathy (5.00), reliability (4.96), and responsiveness (4.84).
Gap scores: the overall mean values of service quality gap score for the private and public hospitals were -0.24
and -0.66 respectively. The largest gap mean score in private hospitals was -0.43 for reliability dimension
followed by empathy; responsiveness; tangibles; and assurance dimensions. In addition, the largest mean gap
score in public hospitals was -0.98 for ―responsiveness dimension‖ followed by reliability; empathy; tangibles;
and assurance. The results in testing for all 5 dimensions measuring service quality were significant for private
hospitals when compared to public hospitals.
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