Corporate governance in public hospitals in the coast province of Kenya

Abstract

Business corporate governance principles have been recently discussed in managerial literature in regards to management practice in the public sector. Among the largest public sectors in Kenya is Health Services. Efficient governance of public hospitals requires the effective, responsible and transparent use of funds, professional management and competent governing structures. This study set to determine corporate governance practices in public hospitals in the Coast Province of Kenya and to establish factors that influence corporate governance practices in public hospitals in the Coast Province of Kenya. This study was a cross sectional study aimed at establishing the existence of an independent governing body, such as hospital board, its operations, and the relationship between such board, management and the clients/beneficiaries of the organization as the operational indicators of governance. On the part of public hospitals, there also exists relationship with the government. Both primary and secondary data as research instruments were employed and covered all the public hospitals in the Coast Province of Kenya. The study found out that, public hospitals in Coast Province of Kenya have put in practice most principles of good corporate governance even though the concept is new to them. However, some provisions of the Legal Notice No. 162 of the Public Health Act tend to limit application of best principles and practices of corporate governance.