The Effect of Financial Management on the Performance of Public Health Institutions in Uganda a Case Study of Mbarara Referral Hospital

Abstract

The Research is basically about the effect of financial management on the performance of public health institutions and the research was conducted on the case study of Mbarara Referral Hospital, Ankole sub-region Mbarara district, and the following were the specific objectives of the study: To determine the effect of financial budgeting on the performance of public health institutions, To find out the effect of financial reporting on the performance of public health institutions and To find out how appropriate cash management affects the performance of public health institutions.

The study used a case study design basing on the use of qualitative and quantitative approaches that were adopted to establish the effect of financial management on the performance of public health institutions. The tool used was a questionnaire to collect data. The researcher used descriptive statistics, generated SPSS to analyze the data.

Findings from the study indicated that the financial management of MRH uses financial budgeting, financial reporting and cash management to determine the performance of Mbarara Referral Hospital. Also it was discovered that public health institutions face some challenges like government’s failure to provide adequate health facilities in the lower health units and lack of adequate funds. However, management in PHI’s has set different strategies to overcome the challenges faced by PHI’s

The conclusions of the study suggested that it is crucial for public health institutions to be run using good financial management practices to achieve its objectives. The research has showed that in order to achieve good patients’ experience of care, affordable cost of healthcare services and disparity in performance, the management has to employ suitable financial management practices for the institution. Thus it is crucial for a public health institution to be run using good financial management practices to achieve its objectives.

The study recommended that the MRH management should increase on the numbers of employees in the financial budgeting department because they play a big role in to develop long-term financial goals and strategies of an institution and how they can use the financial budgeting tools which puts the institution at a higher advantage.

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