MR.
Abstract
This study examined the effect of managerial capacity on the financial performance of private hospitals in Wajir Town, Kenya. A descriptive cross-sectional survey design and census approach were used, covering 56 registered private health facilities. Data were collected from 161 respondents and analysed using descriptive statistics, Pearson correlation, and multiple linear regression. Managerial capacity had a mean score of 3.49 (SD = 0.725) and showed a significant positive relationship with financial performance (r = .502, p < .01). After controlling for resource availability, government support, and innovation and technological adoption, managerial capacity remained a significant positive predictor of financial performance (? = .316, p < .001). The findings indicate that effective planning, leadership, and decision-making contribute significantly to improved profitability, cost efficiency, and financial sustainability. The study recommends strengthening managerial skills through leadership development, strategic planning, and financial decision-making training.
Keywords: managerial capacity; financial performance; private hospitals; strategic planning; Wajir Town; Kenya
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