The roles of financial management on the performance of private not-for-profit hospitals in Uganda

Abstract

The main purpose of this study was to examine the roles of financial management on the performance of Private Not-For-Profit Hospitals in Uganda. The research was carried out in Kitovu Hospital, Masaka District. This study was guided by the functions of financial management that enhance performance of hospitals. The researcher set out for the study guided by three specific objectives to be able to find out how financial management plays roles on performance. These included, establishing the roles of financial planning and budgeting on the performance of private hospitals in Uganda, eexamining the relationship between auditing and the performance of Private Not-For- Profit Hospitals and examining the role of financial statements on the performance of Private Not-For- Profit Hospitals. The researcher used a case study design. Interviews were used to establish the relationships between the variables. Both qualitative and quantitative methods were used together with interviews, questionnaires and observation. Sampling techniques, data collection methods and instruments were used during the first months of 2015. According to the data analysis and findings, it was revealed that; there is a positive relationship between financial management and performance. It was further established that financial management plays a big role in the performance of Kitovu Hospital through its different functions; planning and budgeting, Auditing and financial statements. The researcher recommended that the hospital should strengthen their sources of funds to reduce over dependency on the grants and donations which are being withdrawn. The administration of the health institute should ensure that all the departments comply with proper record keeping and management with the sense that information is wealth so good record keeping gives reliable information which management can base in making informed decisions for the good and development of the health institution. In addition, management of Kitovu Hospital should ensure that internal controls are effective in the organization since they are key to good performance and therefore, the management of the Kitovu Hospital is charged with the responsibility of ensuring that all financial procedures are followed and they should considered to introducing internal auditor who will strength the controls and reinforce procurement procedures and process. The study concluded that financial management plays roles on the performance of PFNP Hospital in Uganda and hence finances should be efficiently and effectively managed to bring about the better performance.