EFFECT OF SUPPLY CHAIN MANAGEMENT ON PERFORMANCE IN SELECTED PRIVATE HOSPITALS IN ILORIN, NIGERIA

Abstract

There has been increasing Patients’ dissatisfaction about health care service delivery in most private hospitals in Nigeria due to the quality of health care services provided to patients. The objective of this paper is to examine the effect of supply chain management on hospital performance in Ilorin, Nigeria. The quantitative research approach and the descriptive study design were adopted for the study. The simple random sampling method was used to select respondents from ten, out of fifty-eight, private hospitals in Ilorin. The study employed the Partial Least Squares method in the estimation of the Structural Equation Model’s effect in Supply Chain Management (SCM) on Hospital performance. Results indicate that SCM has no strong and direct impact on Hospital performance, but has indirect impact on performance through Competitive Advantage. The paper concludes that an efficient SCM will result in more Patient Satisfaction and better Competitive advantage. It is recommended that Private hospitals should not depend on single suppliers. They should engage more reliable suppliers that would be closer to them for better medical procurement and supplies to be achieved.
Classification-JEL:
Keywords: supply chain; drugs; private hospitals; patient care; procurement, structural equation model; hospital performance