Corporate governance and accountability mechanisms and challenges in the private hospitals in Kiambu County, Kenya
This research paper seeks to examine the corporate governance and accountability mechanisms of board directors and composition, board meeting frequency, reporting and controls and challenges of organization structure and culture, managerial and political and legal challenges in the 18 (eighteen) private hospitals in Kiambu County. The researcher applied a descriptive research design. The target population of this study consisted of a total of 18 top managers working at the 18 private hospitals in the Kiambu County, Kenya. The study used primary data which was obtained through an interview questionnaire which was developed based on the two objectives of the study. It had statements describing significant corporate governance and accountability mechanisms and challenges. It was administered through electronic mail and pick and drop later or picked immediately to the targeted population and followed up. The study established that corporate governance and accountability mechanisms was applied in the private hospitals since there the board members were appointed for a fixed term of 3 years and approval from the owner’s representatives, chairman of the hospital was different from the CEO of the hospital and there was a clear split of CEO and the chairman’s roles in the management of the hospitals. Further the study established that the private hospitals experienced the challenges of organizational structure, culture, managerial and legal systems in the process of implementing corporate governance and accountability mechanisms. The study recommends that full corporate governance and accountability mechanisms be implemented in all the private hospitals so as to ensure better management of hospitals in Kiambu County and the country at large, this will reduce the likelihood of earnings management thus increase transparency in the hospitals. In addition, the study recommends that the nature of the contract between owner’s representative/board and managers telling the latter what to do with the funds and management of the organization should be clearly and thoroughly outlined as much as possible to reduce agency conflicts between the agents and the principles. Further the board members should be compensated commensurate to the time spent in the hospital business and their payments should be as per the compensation structures approved by the hospital board.