Inventory control and financial performance of private health Institutions

Abstract

This study investigated the influence of inventory control practices on the financial performance of private health institutions (PHIs) in Masaka City, Uganda, using Kitovu Hospital as a case study. Inventory control was the dependent variable, and financial performance was the independent variable. A descriptive survey design was employed, and data was collected through self-administered questionnaires distributed to hospital staff. The study found that effective material handling, regular use of purchase orders, and wellimplemented reverse logistics significantly contribute to a hospital's financial performance. Material handling practices like checking supplies before storage and proper handling procedures were linked to improved stock availability, service delivery, and profitability. Standardized use of purchase orders enhanced transparency and ensured proper service delivery, while reverse logistics practices like recycling and efficient material movement positively impacted financial health. The study recommends implementing standardized storage protocols, regular audits of storage facilities, and standardized procurement procedures across PHIs. Additionally, robust tracking systems for purchase orders and regular monitoring of procurement practices are suggested to further improve inventory control and financial performance.