Objective

To evaluate the effects of the implementation of a New Public Management system -which professionalizes management positions- on the performance of Chilean public hospitals.

Materials and Methods

A database was constructed for 181 Chilean public hospitals using public information issued in 2015. The effect generated by the tenure of a person selected through the Public Senior Management System (SADP by its acronym in Spanish) for a senior management position in a public hospital was determined by estimating four multivariate regression models.

Results

The tenure of a person selected via SADP is positively associated with variables such as the number of discharges, rotation of patients and occupation rate, thus demonstrating an improvement in the profitability of the available resources. No significant relationship was found between the tenure of a person selected via SADP and the decrease in case fatality.

Conclusions

This article provides evidence about the effects on the performance of a reform based on the New Public Management system. Specifically, it demonstrates that the incorporation of professionals with management skills in senior management positions in Chilean public hospitals improves hospital performance, revealing the importance of the profession of those who direct this type of organizations. Thus, the recommendation is to extend the period of appointment people in these positions.