Effect of Benchmarking Practices on Financial Performance of Private Hospitals in Kenya. A Case of Private Hospitals in Kisii County, Kenya
Author: Ann Chebet, Prof. Willy Mwangi Muturi, Kenya
Abstract: Benchmarking is the process of continuously comparing and measuring an organization with business leaders anywhere in the world to gain information, which will help the organization take action to improve its performance. Hospitals play a vital role in Kenya’s health sector by providing medical services. The main objective of the study was to establish the effect of benchmarking practices on financial performance of private hospitals in Kenya. The specific objectives of the study were to determine the effect of functional benchmarking on the financial performance of private hospitals in Kenya, to establish the effect of process benchmarking on the financial performance of private hospitals in Kenya and to determine the effect of operational benchmarking on the financial performance of private hospitals in Kenya. The study concentrated only on the private hospitals that are in operation in Kisii County and are duly recognized by the Ministry of Health. The study used descriptive research design so as to gather the necessary data for analysis. The study undertook census survey of all the 173 proprietors and medical practitioners. Primary data were collected using a personally administered semistructured questionnaire. The results will be presented in charts, tables and graphs. The study found out that all the three forms of benchmarking under study (Functional, Process and Operational) have a significant influence on the financial performance of private hospitals