Abstract:
Health sector is one of the critical sectors of any economy. In Kenya, the private health market has
grown dramatically over the last two decades and is an important source of health care across various
segments of the population. Private hospitals are established to fill the gap left by the government
health facilities in provision of health care due to budgetary constraints. However the performance of
some of these private hospitals has been declining. The study sought to investigate the effect of
product Strategies on Performance of Private Hospitals in Nyeri County, Kenya. To achieve the
objective of this study a descriptive research design was adopted. The target population was a census
of 56 respondents composing of heads of department or their assistants in the five private hospitals
in Nyeri County. Self-administered questionnaires were used to collect data from the private hospitals
registered by Medical Practitioners and Dentists Board of Kenya in NyeriCounty. A pilot study was
carried out in two private hospitals in Kirinyaga County. Cronbach Alpha coefficient with a value of
0.70 and above indicated that the instrument was reliable. Out of fifty six (56) questionnaires that
were distributed, fifty one (51) responded representing a response rate of 91.1%. The analysis of the
collected data was done by use of statistical package for social sciences (SPSS) to produce descriptive
and inferential statistics. A bivariate linear regression was adopted at statistical confidence level of
95%. The study revealed that product strategies had positive and statistically significant effect on
performance of private hospitals. In addition, the study revealed that majority of private hospital
offers quality services and engages medical personnel who handle patients professionally. The study
recommends that private hospitals should come up with health service delivery charter with a view to
enhance the quality of service delivery and ultimately the performance. The study suggests that future
research could focus on challenges private hospitals face when they focus on implementing product
strategies.
