This paper presents findings from an action research intervention in the outpatient department of
a National Health Service (NHS) Hospital. It investigates the perceived and actual problems of
performance measurement, specifically measuring capacity, at a United Kingdom (UK) hospital.
An action research methodology was adopted: Relevant literature on capacity measurement and
performance was reviewed; the motivation behind its usage explored. Systems requiring
improvement were identified and the adoption and implementation of new working methods
initiated and explored. In addition to considering capacity measurement and performance issues,
the authors examined the effects this may have on the long-term potential of the organisation.
The research identified gaps in the capacity and activity measures used and in the dissemination
of performance information. To address these problems and meet the changing needs of the
department a new performance measurement and reporting tool was implemented. Specific
recommendations for the implementation of a new performance tool for healthcare organisations
are made. The conclusions drawn add to previous commentaries, and develop interesting
questions for future research
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