The aim of this research is to examine the relationship between service quality management dimensions (quality management and patient service quality) and their impact on performance of the healthcare organizations. The organizations that deliver service must broaden their examination of quality from the conventional organization-oriented perspective to a dual, organization–customer perspective. The quantitative methodology was employed to test model of service quality management and performance through an integrated perspective. The MBNQA (Malcolm Baldrige National Quality Award) criteria and grounded theory for patient service quality was adopted to measure the internal and external service quality of healthcare organizations. Further, the study aligned the internal and external service quality to obtain the holistic view of service quality management and performance in healthcare organizations from the perspective of internal and external customers. The outcome of the study indicated that the healthcare organizations had a silver line performance based on MBNQA criteria. Overall, the study reinforced service quality management and performance with the application of MBNQA criteria in healthcare organizations.