Sustainable healthcare: Assessing the impact of green innovation on medical firm performance and patient outcomes

Healthcare organizations are under increasing pressure to adopt sustainable practices in response to growing environmental concern and regulatory demands. Green innovation is identified as a key strategy, though limited understanding exists around its impact on organizational performance and patient care. The purpose of this paper is to empirically explore the relationship between green innovation and performance outcomes in medical firms, and also whether firm performance mediates these relationships along with the moderating effects of both regulatory support and technological readiness. A quantitative cross-sectional survey was deployed to 223 healthcare practitioners from hospitals, pharmaceutical companies and medical devices manufacturers. Data were analyzed using Partial Least Squares Structural Equation Modeling with SmartPLS 4.0. The results substantiate that green innovation may substantially improve medical firm performance (β=0.65) and patient outlooks (β=0.58) Mediation of firm performance in green innovation–patient outcomes model. The pathways are positively moderated by both regulatory support and technological readiness, enhancing sustainability benefits. Green innovation is a strategic lever that enhances both organizational efficiency and patient care. Strong sustainability-performance nexus in healthcare: firm performance as a mediator, regulatory and technological contexts as amplifiers. Environmentally friendly operations should be of interest to healthcare administrators, as evidence suggests improved metrics associated with financial and clinical performance. Supportive policies and incentives adopted by policymakers must go hand in hand with organizations investing in technology infrastructure, as well as training for employees towards successfully scaling up green initiatives.