Influence of Supply Chain Management Practices on Health Commodity Security among Level Four Public Hospitals in Nairobi County, Kenya

Abstract

Commodity security issues plague public hospitals in Nairobi County, Kenya, including inconsistent supplies of health materials and technologies. Due to frequent stock-outs of important pharmaceuticals and medical supplies, patients are directed to purchase them elsewhere. As a result, patients are exposed to financial restraints due to out-of-pocket expenses, which may increase their poverty levels. The occurrence of these concerning patterns prompts this study, which focuses on product selection, quantification, procurement, and inventory management, to determine the influence of supply chain management on health commodity security across level four public hospitals in Nairobi County, Kenya. To understand the influence of supply chain management practices on health commodity security, this study derived its theoretical backing from the Supply Chain Operations Reference (SCOR) model, Transaction Cost Theory and Supply Chain Management Theory. It further adopted a cross sectional survey design. The target population was 120 who comprised of top management team, procurement officers, stores clerks, pharmaceutical officers and head of departments who were drawn from four level four public hospitals in Nairobi County that included Mbagathi Hospital, Pumwani Maternity Hospital, Mama Lucy Kibaki Hospital and Mutuini Hospital. A sample of 91 was drawn using stratified method across the four public hospitals. Within each hospital, simple random sampling procedure was adopted. A structured questionnaire was used to collect quantitative data through self-administered method. The collected data was then analyzed through descriptive and inferential methods using the Statistical Package for Social Sciences version 26.0. However, to establish the effect of each of the predictor variables on the dependent variable, binary logistic regression analysis was used. Logistics regression findings showed that apart from procurement practices, all the other Supply Chain Management practices investigated in this study that is product selection, quantification and inventory management practices had a significant relationship with health commodity security. Specifically, it was determined that the effect of quantification on commodity security was the strongest, followed by inventory management and then product selection. However, procurement didn’t have a significant effect. Those hospitals which had put in place product selection practices had a significantly higher chance (2.208 times more likely) to achieve health commodity security compared to those that have not ; those hospitals which had put in place quantification practices had a significantly higher chance (0.672 times more likely) to achieve health commodity security compared to those that have not and likewise, those healthcare facilities which had put in place inventory management practices had a significantly higher chance (2.035 times more likely) to achieve health commodity security compared to those that have not. Based on these findings, it is recommended that the management of especially those Level Four Healthcare facilities which had not implemented product selection, quantification and inventory management practices to a high extent to consider putting in place strategies to do so. This is because doing so is significantly associated with achievement of health care security.