Performance Management

Our hospital upholds the core values of teamwork, professionalism, empathy, and innovation, guided by the mission of wholehearted dedication, holistic care, and promoting the health of both military personnel and civilians. We consider performance management a vital foundation for enhancing medical quality, strengthening organizational resilience, and ensuring sustainable operations. In response to the rapid changes in the medical environment and the growing emphasis on sustainable development, our hospital integrates Environmental, Social, and Governance (ESG) principles into its management strategies. We demonstrate our commitment to sustainable transformation in healthcare by signing the “Hospital Sustainable Development Initiative.”

Our hospital continuously improves the quality of medical services, enhances the efficiency of resource utilization, strengthens digital governance capabilities, and refines information security management systems. Adhering to principles of integrity and regulatory compliance, we fulfill the social responsibilities of a non-profit medical institution by pursuing stable operations and sustainable development while upholding our public healthcare mission.

1. Policy

Our hospital upholds the core values of teamwork, professionalism, empathy, and innovation, guided by the mission of wholehearted dedication, holistic care, and promoting the health of both military personnel and civilians. In performance management, we implement ESG principles and sustainable governance policies, integrating sustainable operations into our core strategies. By signing the “Hospital Sustainable Development Initiative,” we affirm our commitment to advancing the sustainable transformation of the healthcare system. Simultaneously, we are dedicated to fostering an environment of integrity management, ensuring regulatory compliance and information security, maintaining our non-profit status, and striving for financial self-sufficiency.

2. Strategies

• – Smart Medical Transformation: Leverage AI assistance and digital technologies to optimize processes and enhance operational efficiency.
• – Lean Financial Management: In response to the comprehensive budget management system of health insurance, promote a “cost-saving without quality reduction” strategy, optimize the cost structure of medical materials, and alleviate operational pressures.
• – Risk Prevention and Resilience: Implement the PDCA (Plan-Do-Check-Act) cycle to facilitate risk prevention, real-time response, and continuous improvement in managing medical disputes, fire hazards, and cybersecurity threats.
• – Transparent Communication and Governance: Establish multi-level internal and external management evaluation mechanisms to ensure accountability and continuous improvement.

3. Goals

Short-Term Goals:

• – Continue implementing information security management and maintaining the effectiveness of ISO 27001 certification.
• – Precisely control medical material costs, aiming to reduce the health insurance medical material cost ratio to below 79%.

Midterm Goals:

• – Increase the number of beds and improve the bed utilization rate to ensure stable medical capacity for both military personnel and civilians.
• – Respond to the effects of the overall health insurance budget and new hospital construction, and actively participate in the development of health insurance policy plans.

Long-Term Goals:

• – Obtain accreditation as a “Major Emergency Responsibility Hospital” and become a leading benchmark hospital in the central region.
• – Strive to become a hospital certified for cancer care quality.
• – Actively respond to the 2050 medical net-zero emissions policy, achieving sustainable coexistence between healthcare and the environment.

4. Management Practices

• – Organizational Structure: Establish a “Sustainable Development Committee,” chaired by the hospital director, comprising five major functional subgroups, and develop professionals certified as “Climate and Health Managers.”
• – Audit Meeting Mechanism: Conduct quarterly sustainable development meetings to review key indicators and hold an annual sustainable development conference. Additionally, establish weekly or monthly rolling review meetings focused on cybersecurity, medical material management, and financial performance.
• – Supply Chain Management: Integrate ESG principles into the supply chain moving forward, implement a drug and medical material price negotiation management system, and conduct regular on-site audits.
• – Cybersecurity Monitoring: Join the Military Medical Bureau’s Security Operations Center (SOC) to implement continuous, 24/7 information security monitoring and regularly conduct emergency response drills.

5. Performance

– Operational Performance: Business revenue is projected to increase from approximately NT$1.713 billion in 2023 to over NT$1.872 billion in 2025. The current period surplus is expected to rise from more than NT$29.44 million in 2023 to over NT$43 million in 2025.

– Service Capacity: Outpatient visits are projected to reach 398,401 in 2025, with steady growth in emergency and inpatient care volumes, reflecting strong trust from both military personnel and civilians.

– Cost-Effectiveness: In 2025, approximately NT$3.15 million was saved through negotiations on medical material prices, achieving a weighted discount rate of 4.14%.

– Compliance and Certification: No cases of conflict of interest or integrity violations occurred in 2025; successfully passed the ISO 27001 external audit certification; the ratios of self-paid medical material surcharges and non-billable medical materials in 2025 both exceeded the hospital’s established targets.

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Core Development Focused on Sustainable Governance and Public Health Mission

The Taichung Armed Forces General Hospital positions “hospital governance and sustainable operation” as the cornerstone of its overall operational framework. By integrating medical expertise, administrative management, and sustainable development strategies through systematic governance, the hospital is gradually building a modern healthcare system characterized by efficiency, transparency, and resilience. Within this governance framework, the hospital not only emphasizes continuous improvement in medical service quality but also strengthens institutional management mechanisms to ensure that organizational operations adhere to high standards of regulatory compliance, financial transparency, risk control, and environmental sustainability.

Regarding Regulatory Compliance

The hospital strictly adheres to relevant domestic medical laws, public health policies, and management regulations within the national defense medical system. It has established institutionalized compliance management mechanisms to ensure that all medical practices and administrative operations conform to current legal requirements. Through regular regulatory reviews, internal audits, and feedback from external supervisory authorities, the hospital continuously enhances its regulatory compliance capabilities, reduces operational risks, and improves governance transparency. Additionally, through cross-departmental collaboration, regulatory requirements are internalized into standard operating procedures, making compliance management a fundamental aspect of daily operations rather than merely a response to external demands.

Regarding Operational Performance and Financial Management

The hospital bases its operations on institutionalized financial reporting and performance evaluation mechanisms, regularly disclosing operational results and financial status to ensure the rationality and efficiency of resource allocation. Relevant financial information is prepared in accordance with the accounting system of the national defense medical system and presented through standardized financial statements, including indicators such as income, expenditure, surplus/deficit, and resource utilization efficiency. Through transparent financial disclosure mechanisms, the hospital not only strengthens its accountability to supervisory authorities but also enhances the data foundation for internal management decisions, making resource allocation more efficient and strategic. Additionally, the hospital continuously integrates performance management concepts by incorporating medical service capacity, quality indicators, and resource utilization efficiency into the overall evaluation framework to improve operational effectiveness.

Regarding Risk Management Mechanisms

The hospital has established a comprehensive risk governance framework encompassing various areas, including operational risk, clinical risk, information security risk, and climate and disaster response risk. Through a cyclical process of risk identification, assessment, monitoring, and improvement, the hospital continuously enhances its ability to respond to uncertain events. Clinically, it has implemented a patient safety incident reporting and analysis system to reduce the occurrence of adverse medical events. Operationally, it ensures uninterrupted medical services through key resource backup mechanisms and cross-departmental coordination processes. Additionally, the hospital regularly conducts emergency response drills, including simulations of major disasters, infectious disease outbreaks, and systemic crisis scenarios, to strengthen hospital-wide response capabilities and organizational resilience, thereby ensuring stable medical service capacity during emergencies.

Regarding the Sustainable Management of the Medical Environment

The hospital actively integrates environmental management principles into its overall operational strategy, focusing on improving resource efficiency and reducing environmental impact. By implementing energy management systems, managing water resources, classifying and minimizing waste, and promoting green procurement policies, the hospital gradually lessens the environmental footprint of its medical operations. Concurrently, it advances the concept of low-carbon healthcare by upgrading equipment, optimizing processes, and digitalizing management to enhance energy efficiency and reduce carbon emissions. Furthermore, the hospital strengthens its environmental risk management by incorporating climate change and extreme weather events into long-term risk assessments, thereby improving the healthcare system’s resilience to environmental changes.

Overall, the hospital considers “hospital governance and sustainable operation” as its core foundation for development. By integrating regulatory compliance, transparent disclosure of operational performance, risk management mechanisms, and environmental sustainability strategies, it gradually builds a high-performing, responsibly governed, and organizationally resilient healthcare system. Within this framework, governance is no longer merely an administrative management tool but becomes a central driving force for enhancing medical quality and promoting sustainable development.

Moreover, the hospital firmly believes that effective performance management is the cornerstone for improving medical service quality and a vital pillar for fulfilling sustainable development commitments. By continuously optimizing internal management processes, enhancing cross-departmental collaboration, and implementing data-driven decision-making mechanisms, the hospital not only improves overall operational efficiency but also strengthens the stability and consistency of medical services, enabling patients to receive safer, higher-quality, and more accessible care.

Regarding Governance Culture

The hospital also continuously promotes a transparent and accountability-oriented organizational culture, strengthening awareness of governance responsibilities at all levels and facilitating information flow and participation in decision-making through institutionalized communication mechanisms. This cultural transformation internalizes sustainable development as a shared value and code of conduct throughout the hospital, rather than as the responsibility of a single department.

In the future, the hospital will further integrate hospital governance with sustainable operations, enhancing digital governance capabilities and expanding the use of intelligent management tools to improve risk prediction and decision-making analysis. Simultaneously, it will continue to align with international trends in sustainable healthcare development, progressively refining the ESG governance framework to ensure that medical services balance professional quality with environmental responsibility and social value. This will enable continuous progress toward a modern healthcare institution characterized by high resilience, transparent governance, and sustainable competitiveness.