Factors Influencing Consumers’ Decision in Selecting Private Hospital in Perak

Abstract

Private healthcare sector has been growing over the years. Therefore, consumers have a wide selection of private hospitals for them to choose when seeking medical attention. This study investigates the factors that influence consumers’ decision when selecting private hospital in Ipoh, Perak. A quantitative, explanatory research design is applied in this study. Survey questionnaires based on SERVQUAL’s five dimensions with an additional dimension which is treatment cost were distributed via convenience sampling to 150 working individuals who used private healthcare services in Ipoh, Perak. Data analysis was carried out  with Multiple Linear Regression (MLR) analysis using SPSS software. The findings revealed that Tangibles have the most influence on consumers’ decision when selecting private hospital, followed by Reliability, and Treatment Cost. However, Responsiveness, Assurance, and Empathy have no influence on consumers’ decision in selecting private hospital. These findings provided valuable insights for private hospital’s management to have a better understanding of consumers’ perspectives to develop strategies and provide better healthcare services to meet consumers’ needs. The findings are also useful for policymakers as many of the respondents in this study are from the B40 and M40 income levels who are aware of healthcare protection but may have financial constrains in getting them. As the cost of treatment rises, particularly for critical illnesses, policymakers may introduce medical protection options targeting these income groups in collaboration with insurance companies. Limitations of this study were discussed, and recommendations for future researchers were made.