In line with health care reforms,Abernethy and Lilis (2001) argued that hospitals provide a
suitable empirical setting where a diversity of structural arrangements and strategic
orientations are both readily observable and recognized as having implications for other
elements of control systems. Further, the majority of past studies examined variables in
isolation. The proposed research framework will provide contribution on the development
of hospital Management accounting system by investigating various contextual variables in a singlemodel and at the
same time using Management accounting system as a mediating variable. This research will also help practitioners
develop new approaches in designing the Management accounting system within the health care sector.