The aim of this paper is to develop a reliable and valid CRM (Customer relationship management) scale specifically catering to Indian public hospitals. An exhaustive review of literature on CRM was followed by depth interview and questionnaire survey. Exploratory factor analysis was followed by confirmatory factor analysis which was presented in three forms; the single factor model, covariance model and the structural model. The covariance model shows CRM in Indian public hospitals as a multidimensional construct comprising of factors namely tangibles, service quality, trust, availability and accessibility which is validated through the structural model. The findings of this study validate the long held belief that CRM is a multidimensional construct and serves as a critical success factor for performance enhancement. The proposed scale will help in identifying issues that contribute to CRM in Indian public hospitals and thereby formulating strategies accordingly, resulting in efficient (cost) and effective (outcomes) CRM practices. A fair amount of literature on Indian public hospitals dealt with identifying factors explaining the constructs of quality, value or satisfaction. But there is paucity of research pertaining to industry-specific CRM scale development and validation. This study is an attempt to bridge this gap in the existing literature.
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