ROLE OF CASH PLANNING TECHNIQUE ON FINANCIAL PERFORMANCE IN PUBLIC HOSPITALS IN KAJIADO NORTH SUB-COUNTY
DOI:
https://doi.org/10.47941/ijf.166Keywords:
Cash planning technique, financial performance, Public Hospitals in Kajiado North Sub-CountyAbstract
Purpose: The purpose of this study was to determinethe role of cash planning technique on financial performance in public hospitals in Kajiado North sub-county.
Methodology: The study adopted a descriptive survey design.The target population for this research study consisted of government/ public hospitals. The target population wasfour government hospitals and medical centres located in townships of Kajiado North sub -county. This study therefore used all the 30 accounts/ finance employees and the 6 six senior medical officer/ superintendents.The questionnaires were distributed via drop and pick and email, also online survey was used and this minimized the problem of non-response rate
Results:The study sought to find out how cash planning affects financial performance, the study did confirm that cash planning affects financial performance. The study established that majority of the respondents agreed that indeed cash flow was well managed at these public hospitals. The overall mean obtained on financial performance was 3.95 indicating a strong mean that is leaning towards agree in a five point likert scale. The combined effect model that was computed explained the variation in financial performance of public hospitals in Kajiado north Sub County.
Policy recommendation: The study recommended that the there is need to strengthen cash collection avenues by encouraging payment in other forms and move from cash payments, with the advent of M-pesa and cash payments to banks where this can be audited for proper payment systems', The study also recommended that there is need to digitize accounts records since with the huge number of persons seeking services, it becomes a big challenge to audit all receipts and to do areconciliation between cash and bank. The study further recommended there is need to modernize equipment at these hospitals using these funds/ monies as majority of the operations is funded by the exchequer this is in line with devolution and also in promoting sustainable development goals.
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