Influence of Corporate Governance on Performance in Public Hospitals in Embu County, Kenya

Abstract

Corporate governance is important to the performance of Public Hospitals (PHs) all over the world. This study investigated the Influence of Corporate Governance on Performance in PHs in Embu County, Kenya. The objective of the study was to assess how board characteristics influence performance in PHs in Embu County. The study’s main problem was to assess the performance in PHs using level of customer satisfaction, level of employees’ satisfaction and efficiency. Given that there is minimal research in corporate governance on management of PHs especially in Embu County, the study addressed challenges faced by management, thus helping formulate policies and strategic guidance for County Governments (CGs). The Stewardship Leadership Theory and Organizational Leadership Style were used to develop the theoretical framework on corporate governance. The information was gathered from 140 respondents using questionnaires. Quantitative data was analyzed using Descriptive Statistics whereas Qualitative data was analyzed using Content Analysis Method. The findings were then recapitulated to ascertain whether PHs have put in place policies and guidelines that conduct best practices of corporate governance. Some of the outcome were; PHs complied with the application of corporate governance but failed to implement it fully; the PHs adhered to most of the regulations and government policies but failed to fully adhere to corporate governance guidelines on board characteristics. Finally, the summary and recommendations were then prepared for policy formulation and future use in research on corporate governance on performance in PHs in Embu County, Kenya and globally.