Effect of Investment Management Practices on Sustainability of Private Hospitals in Nairobi, Kenya

Abstract

Private hospitals in Kenya provide over 47% of the healthcare services to the general population of over 51 Million people in Kenya. Despite their importance, their sustainability has been at risk, threatening provision of health services of Kenyans, achievement of social pillar under Kenya’s vision 2030. The study investigated the effect of investment management practices on the sustainability of private hospitals in Nairobi County, Kenya. The study was guided by agency theory. The study used positivism approach and employed descriptive and explanatory research design. The target population was all the tier 3 and 4 licensed private hospitals in Kenya which were 68. Census was adopted. Primary data was collected using standardized closed questionnaires as the main research instruments. Data analysis was done using SPSS. Descriptive and inferential statistics used to analyse were simple means; standard deviations, frequency tables, and correlations. Model R- Square, ANOVA Statistics and regression coefficients R were used to test the hypothesis of bivariate model. Results showed that investment management practices, had a positive and significant effect on sustainability of private hospitals in Kenya. The study concluded that investment management practices had a statistically significant relationship with sustainability. Investment management practices had an R2 of 39.3% explaining sustainability. The study recommends that first, private hospitals should continuously build capacity of the investment management functions as they have a significant relationship with sustainability of hospitals.