The effect of financial management on the performance of public hospitals in Uganda

Abstract

This study sought to investigate the effect of financial management on the performance of public hospitals in Uganda. The objectives of the study included; to examine the role of planning and budgeting on the performance of public hospitals in Uganda, to investigate the relationship between financial reports and the performance of public hospitals in Uganda, and to assess the relationship between financial controls and the performance of public hospitals in Uganda. This study adopted a case study; Masaka Regional Referral Hospital with a total population of 85 and a sample size of 70.The study instruments completed and returned represents about 71%. Data was collected using questionnaires which were analyzed to come up with the research findings. The data was analyzed using descriptive statistics computed using SPSS version 16. The study found that planning and budgeting affects the performance of public hospitals in Uganda. It also revealed that it is important for public hospitals to prepare financial reports for better performance of public hospitals. Further still, it establishes that there is a relationship between financial controls and the performance of public hospitals. In conclusion, financial management is established to be a critical factor in performance of public hospitals in Uganda. This is because planning and budgeting form the basis for measuring performance. Financial reports aid decision and accountability needs of managers and financial controls enable management maintain control over various activities which determine the performance of the public hospitals. There is need for urgent consideration of effective financial management practices in public hospitals in Uganda.