Effect Of Strategic Procurement Management On Performance Of Level Five Hospitals In Kenya

Purpose: The purpose of this study was to establish the effect of strategic procurement management on performance of level five hospitals in Kenya. Methodology: The study collected both primary and secondary data. The data collection instruments were questionnaires. Secondary data was collected from published materials and information from other sources such as world health organization reports, periodicals and health procurement publications. The information was displayed by use of bar charts, qualitative data was collected using open ended questions and was analyzed using content analysis and presented in phrase form. A census study was conducted and questionnaires were used to obtain data. The study targeted 539 staffs at Kakamega, Kisumu, Kiambu, Machakos,Coast,Makueni, Kajiado, Mama Lucy,Embu,Meru,Thika,Garissa and NyeriCounty referral hospital in twelve counties. A descriptive research design was used. A stratified sampling method was used to pick 162 respondents from the target population. Data was analyzed using Excel worksheets and statistical package for social science (SPSS) to come up with descriptive statistics which included means, frequencies and percentage. Inferential statistics such as correlation and regression were also used to analyze the data. To ensure reliability in the measurements provided in this study the Cronbachs' Alpha (α) was used. Findings: The findings obtained show that all the four independent variables had significant relationship between performance of level Five hospitals (the dependent variable) and strategic sourcing ; procurement planning ; e-procurement and; supplier relationship.This means that they played vital roles to the overall performance of the hospitals as shown by the multiple correlation coefficients R. Indeed, the findings show that that there was a rather strong correlation between the predicted and observed values in the regression model. Furthermore the coefficient of determination R2 was found to implying that variance in performance of level Five hospitals could be explained by strategic outsourcing, procurement planning, and E-procurement and supplier relationship. Unique Contribution to Theory, Practice and Policy:Hospitals should strengthen their outsourcing activities and have workable frameworks on how to do so. It is also recommended that there is need to put in place mechanisms for enhancing supplier relationships.