E-Procurement and Performance of Private Hospitals in Kisii County, Kenya

Technology powered procurement has given birth to e-procurement as styled as the new procurement lifestyle that changes the game in business. E-procurement encompasses all processes and activities concerning procurement that happens on the e- business platform. With e-procurement the entire procurement process is handled online, so the company decided to make the purchases of various types, from raw materials to services. E-procurement accounts for improved effectiveness and efficiency in term of quality and costs. In the context of healthcare systems, private hospitals have equally embraced e-procurement in the guise of web-based systems, e-tendering, e-ordering and e-payments. The challenge is establishing the relationship between e-procurement and performance of the private hospitals. The study employed a descriptive survey research design with a target population of 212 and a census was done. The study found out that e-procurement practices account for 79.9% of the performance of private hospitals. The regression model established was Y = -.134 + .471 [Web-based systems] +.229 [E-tendering] + .147 [E-ordering] + .266 [E-payment] + ɛ. The study concluded that e-procurement practices have a statistically significant relationship with performance of private hospitals in Kisii county Kenya.