The Role of Intellectual Capital on Hospital Performance: Evidence at Facility-Level

Abstract

Based on the social capital theory, this study argues that intellectual capital, defined as knowledge and capabilities within the organization, significantly affect hospital performance. This study examines the impact of intellectual capital on four key hospitals’ performance metrics, i.e. quality, productivity, length of stay, and satisfaction. Using a sample of 34 hospital facilities’ operational reports to construct hospital performance and individual-level survey of 143 individuals across these 34 facilities to construct intellectual capital during 2018, this study finds that intellectual capital significantly increases employee productivity and reduces patient stay length. This study contributes to the literature by providing evidence that intellectual capital plays an important role in reducing bottleneck for hospitals to meet increasing demand in healthcare services.