IJSSE - International Journal of Social Sciences and Entrepreneurship Upcoming Journals: International Journal of Innovation and Management (IJIM), International Journal of Engineering and Architecture (IJEA) & International Journal of Science and Agriculture | IJAE, IJEF & IJHRP Call for Papers - Forthcoming Issue (Decemer 2014). Submission deadline: 25th December 2014 |

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Solomon Mwangi Kamau

Master of Business Administration, Jomo Kenyatta University of Agriculture and Technology, Kenya


Private hospitals largely depend on competitive marketing strategy that determines their success and growth. The modalities of the health sector have changed a lot in the new millennium compared to the way they used to be in the years bygone. The profitability of a firm is a key concern, as is the ability to better with stand negative shocks and contribute to the stability of the sector. The objective of the study was to determine the effect of internal factors on the profitability of private hospitals in Kenya. A case study research design was adopted by this study. The population for this study was departmental heads and staff in the finance department of the Karen Hospital. Stratified random sampling was used to get the data sources with primary data collected using semi structured questionnaires. The researcher used drop and pick method of data collection. A sample size of 5 respondents was chosen to form the pilot study. Data analysis was done using Statistical package for Social Sciences (SPSS version 20). Descriptive statistics were used with multiple regressions done using SPSS. Tables and other graphical presentations such as bar charts, histogram, and pie charts were used to present the data. The study established a positive relationship between profitability of private hospitals and firm size, volume of capital and tangibility of assets with leverage showing a negative relationship. The study concluded that firm size, leverage, volume of capital and tangibility of assets affect profitability of private hospitals in Kenya. The researcher recommends that private hospitals should expand in a controlled way with the aim of achieving an optimum size, avoid situations where they are highly leveraged, increasing the number of shareholders, and develop sound techniques of managing their assets. The researcher recommends a study on the external factors that may affect the performance of hospitals in Kenya.

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