Performance contracting and the implementation challenges in district hospitals in Central Kenya Counties
Performance contracting has been adopted as an instrument to reform public service, granting managers more operational freedom while holding them accountable for the performance of the enterprises through a system of rewards and sanctions. The study was dedicated to identify how performance contract are implemented in district hospitals in Central Kenya and to establish the challenges faced in the implementation of performance contracts in district hospitals. The study was based on descriptive cross-sectional survey. The purpose was to describe the state of performance contract implementation in district hospitals in central Kenya. The data collection was through questionnaire method. The target respondents were the departmental heads. Once the pertinent data was collected the data analysis was done using descriptive statistics like percentages, mean and frequencies. Data is presented in tables, pie charts, bar graphs and narrative. Out of 40 questionnaires that were issued 30 were responded to. A response rate of 75 % was achieved. An overall analysis showed that performance contract has not achieved satisfactorily results in the hospital. Performance contract is affected by many challenges including poor training on performance contract, government imposed policies which hospitals are yet to digest and have fulfilment of intended objectives of performance contract in hospitals. Further research should be carried out on how to reap full benefits of performance contract.