Analysis of Service Quality and Organizational Performance of Private Healthcare Facilities in Nairobi County, Kenya

Abstract

Private healthcare has a significant market share, approximately 50% in Sub –Saharan Africa. In Kenya, it contributes 22% of all health services. Despite the sector’s contribution, its annual growth rate continues declining from 5.2%, 3.5% and 2.3% in 2008, 2009 and 2010 respectively. Previous studies on service quality dimensions have focused on the relationship between tangibility, responsiveness, empathy, reliability, assurance, and customer satisfaction no studies have looked at elements of service quality such as competence and equity in relation to organizational performance. The main objective of this study was to analyze the relationship between service quality and organizational performance of private healthcare facilities in Nairobi. Theory of quality trilogy guided the study in a correlational survey research design. The population was 52 chief operation managers of 52 private health facilities accredited by NHIF in Nairobi. Pilot results (N=10) revealed 51-item instrument reliability ranged between α=0.700 and α=0.867 Results revealed Tangibles (β = 0.258, p = 0.005); responsiveness (β = 0.244, p = 0.007); Competence (β = 0.222, p = 0.032) and Equity (β = 0.248, p = 0.011) had positive significant effect on organizational performance of private health facilities in Nairobi. The study concluded that service quality practices (tangibles, responsiveness, competence and equity) were significant predictors of organizational performance. Recommendations were that facilities should continue enhancing service quality dimensions as these efforts improve organizational performance. The study provided a service quality management framework that will aid healthcare policy makers in strengthening the relationship between quality of care and organizational performance.