Determinants of Revenue Collection in Public Hospitals in Kenya

Abstract

This study explores the intricate mechanics of revenue collection in public hospitals in Nairobi and throughout Kenya. Public hospitals do not pay taxes, unlike for-profit businesses, and rely on government money and other contributors to improve services, treatment facilities, and personnel capacities. To serve a broad patient group with a range of financial abilities, this support is essential. This study looks at how important management is to hospital operations, highlighting the need for strict oversight of processes to maximize revenue collection. The study explores three relevant theoretical frameworks: the Cost Shifting Theory, which redistributes service costs from low- to high-income clients; the Health Insurance Theory, wherein covered clients contribute to revenue through insurance payments; and the Operating Efficiency Theory, which advocates for streamlined hospital operations to boost revenue. In essence, this research underscores the pivotal roles of management, workforce quality, service delivery, and strategic revenue collection in bolstering revenue generation for Kenya's public hospitals. By focusing on management, workforce quality, and service delivery, this study provides insights to augment revenue generation and enhance the overall healthcare experience.