dc.description.abstract | Private hospitals plays a key role in any economy for both developed and developing
countries in terms of economic growth as well as creation of employment opportunities.
However, despite the vital role, Private hospitals are still faced with a number of challenges
that deprives them from effective and optimal competition in the current market dynamics.
And as such, an effective internal control practice that has the potential to reduce theft, fraud
and fraudulent activities is an essential enabler towards the achievements of organizational
objectives as well as goals. This study examines the internal control practices on financial
performance of private hospitals in western region,Kenya. A descriptive research design was
used for the study. A population of 19 registered private hospitals was randomly selected
with a sample size of 3 people per organization giving a total of 57 self-administered
questionnaires which were distributed to respondent and collected after filling for analysis.
The research results established that through Segregation of duties, Authorization of work
activities, and internal audit of books, financial performance of the organization increased for
the year 2020 as compared to year 2019 and hence a positive correlations in respect to
financial perspective of private hospitals in western Kenya region. The results further
revealed that Documentation of transactions and Standard operating policy has significant
negative correlations on financial performance of private hospitals in western region,Kenya.
The study therefore concluded that there exist an inverse relationship between documentation
of transaction and standard operation policy on financial performances of private hospitals in
western region Kenya. The studies also further concluded that there exist a direct relationship
between Segregation of duties, Authorization of work activities and internal audits of books
on financial performance of private hospitals in western region Kenya. The study recommend
that private hospitals should implement an effective internal policies on Documentation of
transactions and standard operating policy to facilitate efficient flow of work schedules as
well as minimizing fraud and loss of resources and this should be geared towards
achievement of Mission, Vision and goals .They should also ensure proper strategic plans
targeted towards success through provision of services that are beyond customers
expectations. They should also ensure that regular monitoring and evaluations of the control
practices are carried out for consistency and effective operation. | en_US |