Evaluating the impact of healthcare facilities and service quality on patient satisfaction in Malaysian private hospitals: a PLS-SEM approach

Purpose This study examines the influence of healthcare facilities management (FM) variables on perceived service quality. It evaluates how the quality of healing environments, infrastructure and core healthcare services impacts patients’ perceptions of service quality and overall satisfaction in private hospitals in Kuala Lumpur, Malaysia. Design/methodology/approach The study employs Partial Least Squares Structural Equation Modelling (PLS-SEM) as the primary analytical method. Data were collected via a structured survey given to 249 respondents across 13 private hospitals. Findings The PLS-SEM analysis reveals 13 statistically significant relationships across various dimensions of service quality, including assurance, reliability and responsiveness. Interaction effects indicate that the quality of the healthcare healing environment and healthcare infrastructure significantly influence patients’ perceptions of service quality. These findings emphasise the essential role of strategic facilities management in enhancing patient satisfaction and competitive positioning within the healthcare sector. This study contributes to the understanding of healthcare service delivery by highlighting the link between FM and perceived service quality, with implications for hospital administrators, policymakers and stakeholders. Research limitations/implications The study focuses on private hospitals in Kuala Lumpur. Future research should include other regions and public hospitals as comparison groups to explore possible similarities or differences between the two organisations. Additionally, a longitudinal approach could provide deeper insights into long-term effects. Practical implications From industrial perspective, the findings suggest that investments in healing environments, infrastructure quality and maintenance strategies should be treated as strategic property management decisions rather than routine operational expenditures. Recent property management research emphasises lifecycle optimisation, asset performance measurement and sustainability value as a long-term competitiveness for organisation (Wilkinson et al., 2019). In private healthcare markets, aligning FM performance with property management objectives can enhance asset reliability, reduce lifecycle costs, strengthen competitive positioning and revenue sustainability. The results also indicate that over-prioritising clinical functions without adequate FM resource planning may weaken service quality dimensions that directly affect patient satisfaction and long-term asset performance. Social implications Finally, the study also has important societal implications. Recent research underscores that resilient and well-managed healthcare organisation contributes to public confidence, service continuity and improved quality of life (Khatri et al., 2023). By demonstrating the measurable linkage between FM performance, service quality and patient satisfaction, this study supports the development of more sustainable, user-centred properties that enhance societal well-being and long-term infrastructure resilience. Originality/value This study merges property management and FM service quality in private hospitals, providing novel empirical evidence. It presents healthcare facilities as strategic property assets and demonstrates how FM performance impacts patient satisfaction and service quality, offering valuable insights for asset-based decision-making in private healthcare properties.