The private health sector has received much attention in recent times and is crucial in the expansion of access to quality healthcare. The majority of private hospitals in the country are undergoing performance challenges due to the inability to retain and satisfy their customers. Because of the improvements in health provision by county governments, private hospitals are facing increasing performance challenges due shortage of human resource personnel, shortage of medical services and inadequate medical infrastructure. Therefore, this study sought to find how the level of implementation of service quality standards affected the organisation performance of private hospitals. This study is supported by the Service Quality (SERVQUAL) model. The study is quantitative in nature guided by correlational research design. The study was conducted in Eldoret town covering major hospitals classified from Level 3B and above. The target population involved 1875 employees from 25 private hospitals in Eldoret town. A sample size of 319 respondents was chosen through the Cochran sample size formula to be representative of the whole population. The respondents (319) out of 1875 were selected using stratified and random sampling techniques. The research instrument used in data collection was a questionnaire. Data analysis was undertaken through the use of descriptive statistics; frequencies, percentages, means and standard deviation inferential statistics; correlation and linear regression with the help of Statistical Product and Service Solutions computer software. Findings showed service quality standards (β=0.240) had a significant positive effect on the performance of private hospitals in Eldoret town. It is concluded that the performance of hospitals is dependent on the extent to which service quality standards were implemented by the management of private hospitals in Eldoret. The study recommends that private hospitals regularly collect customers’ feedback to improve the standards of services/ The study findings provide solutions to private hospitals on the way to improve their performance through the adoption of quality healthcare service strategies in the delivery of services to patients
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