Cost Strategy on the Performance of Level Four Public Hospitals in Nairobi County, Kenya

Abstract

Kenya's healthcare sector operates in a highly competitive and challenging environment, necessitating the adoption of effective strategies for sustainable performance. In today's dynamic and competitive landscape, organizations must continually assess their practices and outcomes to enhance their performance. This study sought to explore the effect of the cost leadership strategy on the performance of public Level Four hospitals in Nairobi County. The study employed a descriptive research design and structured questionnaires for data collection. The study revealed that while cost leadership (r= 0.131, p<0.05) exerts a positive influence on hospital performance, its effect remains modest. This modest effect is attributed to the predominant government sponsorship of services and products in these hospitals, with the government shouldering most associated costs typically borne by patients.