Health Care Financing Strategies And Their Impact On Financial Sustainability (Case Of Faith Based Hospitals In Kenya)

ABSTRACT

Although the Government remains the main provider of health care services in Kenya, Faith Based Hospitals are a crucial component of our society today. Faith Based Health System operates a total of 993(about 40%) health facilities in the country comprising of large (secondary) and medium (primary) referral hospitals, health centres, dispensaries and community based health care programs (MOH 2011). Faith Based Hospitals have complemented the role played by the government in the provision of affordable health care in areas where the government was not involved or has not ventured into. Despite the significant contribution made by Faith Based Hospitals in health service delivery, they may have failed to respond adequately to the emerging challenges in the health sector so as to enhance their sustainability. Specifically they may have not sufficiently invested in key areas like resource mobilization, strategic approach to operations and adoption of responsive management practices. This study therefore, sought to assess health care financing strategies in Faith Based Hospitals and their impact on financial sustainability. This study was guided by these objectives; to determine the effect of patient revenue, health insurance, entrepreneurial activities and donor funding on financial sustainability in Faith Based Hospitals. The study also sought to determine the relationship between financial reporting, control environment practices and financial sustainability among Faith Based Hospitals. Survey was used to provide qualitative and numeric descriptions of the sample population. Survey assisted in investigating populations by selecting samples to analyze and discover occurrences. The study was conducted in Faith Based Hospitals in Central Province of Kenya owned by both Kenya Episcopal Conference-Catholic Secretariat (KEC-CS) and Christian Health Association of Kenya (CHAK) for protestant churches. The sample was based on probability sampling procedures. Two sampling techniques were used under probability sampling namely; purposive sampling and stratified random sampling. Data collection was carried out using a semi-structured questionnaire and intended respondents were those who were involved in governance, management and implementation of core health programs of these hospitals. Descriptive statistical method was mainly used for data analysis such as frequencies, percentages and averages. Qualitative analysis of the responses was done as responded in the questionnaires to analyze the relationship between health care financing practices and financial sustainability in Faith Based Health Institutions. This study is expected to reveal the relationship between health care financing practices and financial sustainability. The results will hopefully assist managers in Faith Based Hospitals, entrepreneurs and other organizations to improve on management practices and as a result enhance sustainability of their institutions. Health care financing remains a critical element of the social and economic development of this country. An appropriate financing mechanism will enable the health sector to deliver on critical millennium development goals to which Kenya has made irrevocable commitments.