Hospital cost systems in a brazilian federal state under a contingency theory perspective

Abstract

A number of authors argue that more functional cost systems could contribute to decision making and consequently to economic performance. Other studies, however, state that a cost system’s functionality alone cannot explain a boost in favorable performance, as it depends on the cost system and contingent variables alignment. Following this line, the present research sought to identify the relationship between contingent variables and cost system, and the latter with performance, in hospitals of the Brazilian federal state of Minas Gerais that provide services to SUS (acronym in Portuguese for the Brazilian unified healthcare system). Using a structured question naire, two electronic databases, factorial analysis and structural equations modeling, we found that alignment between contingency variables and the cost system can indeed affect performance, thus supporting contingency theory. These results may prove potentially useful for hospital managers, offering insights that may help in designing cost system features that fit contextual
factors for performance improvement.