Influence of Contract Management on Purchasing Consortia at County Referral Hospitals in the Coast Region, Kenya

Abstract

The Purchasing consortium has been used to describe a form of cooperation in a diversified view to pool resources and manage supply risk. Depending on the anticipated advantages, the function of a purchasing group might be expanded more or less. The objective of the study was to determine the influence of contract management on purchasing consortium. The study was done in the County Referral Hospital in the Coast Region, Kenya. Theoretically, the study was anchored on competency theory, MacNeil Relational Theory. The study used the descriptive research design in undertaking this study. The study population comprised of 212 officials drawn from across the county referral hospitals in the coastal region of Kenya. The stratified random sampling technique resulted into having a total sample size of 139 units of analysis. Data was collected by use of questionnaires, analyzed, and presented scientifically in tables and graphs. The study findings revealed that Contract Management has a significant positive on the purchasing consortium. The study recommends that government and regulatory authorities implement policies and incentives to encourage healthcare organizations to adopt a portfolio approach to procurement. Given the significant financial and operational implications of purchasing consortiums, robust regulatory mechanisms are essential to safeguard against corruption, fraud, and collusion. Regulators should establish clear guidelines, standards, and monitoring mechanisms to govern consortium formation, operation, and performance evaluation. The study also recommends that government and regulatory bodies leverage technology and data analytics to enhance procurement efficiency and effectiveness in the healthcare sector. Furthermore, the study recommends that hospital management adopt a strategic approach to contract management that aligns with their organizational objectives and resource constraints. While the correlation analysis revealed a weak relationship between contract management and consortium participation, it is imperative for hospitals to prioritize effective contract management practices to mitigate risks and maximize value from procurement activities.