THE INFLUENCE OF INVENTORY MANAGEMENT ON THE PERFORMANCE OF LEVEL FIVE COUNTY REFERRAL HOSPITALS IN KENYA
Abstract
Purpose of the Study: The purpose of the study was to evaluate inventory management on the performance of level five county referral hospitals in Kenya.
Problem Statement: Insufficient medicines in public health facilities is common in the current devolved system in most counties in Kenya and in particular in Bungoma County (Kaitany, 2022). Most health facilities experience medicines stock outs from time to time, making it incredibly difficult for them to continue providing the health care services (Atkins et al., 2022). Patients are often required to purchase drugs from private pharmacies, which are costly due to high markups in supply chain (Wandera et al., 2022a). In 2017, Bungoma county referral hospital, was hit by an acute shortage of medicines after KEMSA cut off supply over a Ksh 21 million debts (Barasa et al., 2018). This shortage included basic medicines such as painkillers, anti-malaria medicines and other medical suppliers (Omai, Ngugi & Kiarie, 2019).
Methodology: The resource-based view theory guided the study using cross-sectional census strategy of mixed methods research using random sampling on 47 county referral hospitals in Kenya with a target population of 150 respondents. Procurement, finance, and medical staffs were units of remark. The study piloted twenty (15) questionnaires (10 % of sample) to test validity and reliability of research instruments.
Results: Data on 82 questionnaires was transformed to interval scale, analyzed using exploratory factor analysis in developing multiple linear regression equation model. The final overall model was interpreted using F-test statistics and R2 value the overall final model results were; {F statistic (5, 76) = (4.613}, against critical F-value {(2.49), and general rule of thumb (F>2.5), R2 (.443)}.
Conclusion: This upshot suggests a substantial relationship amid all moderated independent variables on the dependent variable.
Recommendation: Future research be on suppliers' characteristics and behaviours on supplier visibility in pharmaceutical supply chains in Kenya, route planning and scheduling on sourcing optimization in county referral hospitals in Kenya, communication structures on performance of county referral hospitals in Kenya, order systems on performance of county referral hospitals in Kenya, and closed loop ended operations on performance of reverse logistics sourcing in referral hospitals in Kenya.
Keywords: Inventory management, Performance, Policies, Supply chain management
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