Procurement management and financial performance of private hospitals in Uganda: Case study Nkozi hospital

Abstract

The study aimed at establishing how procurement management affected financial performance of private hospitals. It has the following objectives; to evaluate the effect of procurement planning, monitoring and evaluation and the relationship between procurement management and financial performance of private hospitals. The researcher employed a case study design using the quantitative study approach where questionnaires were used as primary tools using random sampling techniques for data collection which was analysed using descriptive analysis and results were presented in tables. The sample size of the study constituted of 108 respondents but only 80 responded. The key study findings were; Nkozi hospital has approaches it follows in assessing procurement planning, monitoring and evaluation to ensure effective procurement management, the hospital also has a well-defined staff which manages its planning, monitoring and evaluation which enables the hospital to reduce risk exposure thus enabling the hospital improve on its financial performance. There was a significant relationship between procurement management and financial performance of Nkozi hospital. Findings indicate that the hospital has procurement planning criteria it employees and management policies to ensure effectiveness and efficiency. The hospital also has a well defined committee which manages its procurement process and a sound monitoring system which enables the hospital to reduce on the risks thus enabling the hospital improve its financial performance. On recommendations from the findings of the researcher, Nkozi hospital should strengthen their procurement planning processes and appraisal procedures, ensure that sound management policies are in place and continuous monitoring of stock is done to increase on the hospital’s performance. In conclusion, drugs were the basic assets for the hospital which constituted their major sources of income thus contributes greatly to the growth of the hospital and there exists a strong relationship between procurement management and financial performance of private hospitals.