Effect Of Corporate Governance Structures On Performance Of Private Hospitals In Nairobi County

Abstract

The improvement of Kenya's healthcare delivery structures depends on effective corporate governance frameworks. Correctly implemented corporate governance structures have a significant impact on preventing business scandals, fraud, and legal issues, while also enhancing the organization's reputation as a trustworthy and self-regulating entity. The main objective is to investigate how corporate governance structures influence the performance of private hospitals in Nairobi County. The research aimed to analyze the impact of board size, gender composition, age, and organizational processes on the performance of private hospitals in Nairobi. The study used descriptive research design. The target population for this study was private hospitals listed on www.ehealth.or.ke, which offer various medical treatments. Data collection for this study involved the use of a questionnaire. The Cronbach alpha coefficient was used to assess the instrument's reliability after a pilot study was conducted, and it was computed using SPSS. After data collection, a series of operations, including editing, coding, classification, and analysis using the statistical package for social science (SPSS), was performed. Descriptive statistics such as frequencies and percentages were utilized to analyze the data. To determine the current relationship between the dependent variable and the independent variables, several tests, including Normality Test, Multicollinearity Test, heteroscedasticity test, and Linearity Test, were conducted. After data analysis, the study established that board size and performance of SMEs is positively and significantly related. Gender composition and performance of private hospitals in Nairobi County is positively and significantly related. Government regulations and performance of private hospitals in Nairobi County is positively and significantly related. Organizational procedures and performance of private hospitals is positively and significantly related. The study therefore recommended that private hospitals should invest in their bard size especially on its gender composition with articulations with the government regulations without compromising on their procedures they undertake to fully be compliance.