EFFECT OF BULK PURCHASING PRACTICE ON OPERATIONAL PERFORMANCE OF PRIVATE HOSPITAL PHARMACIES: A CASE OF OASIS HEALTHCARE GROUP, KENYA
Abstract
Purpose of the Study: The study examined the effect of bulk purchasing practices on the operational performance of private hospital pharmacies in Oasis Healthcare Group Limited.
Problem Statement: Private hospital pharmacies require efficient procurement systems to ensure the timely availability of medicines and other health products while controlling procurement costs and maintaining dependable operations. Despite the adoption of centralized procurement practices within Oasis Healthcare Group Limited, challenges related to procurement costs, timely availability of health products, and operational efficiency may persist.
Methodology: The study adopted a descriptive research design and targeted 104 participants comprising hospital administrators, logistics officers, procurement officers, warehouse staff, and pharmacy personnel from the 12 health facilities within Oasis Healthcare Group Limited. A census sampling technique was employed, and structured questionnaires were used for data collection. Data were analyzed using descriptive statistics, Pearson correlation analysis, and multiple linear regression.
Results of the Study: The findings established a strong, positive, and statistically significant relationship between bulk purchasing practices and operational performance (r = 0.868, p < 0.001). Multiple linear regression analysis further demonstrated that bulk purchasing was a statistically significant predictor of operational performance (β = 0.271, p = 0.002).
Conclusions: The study concludes that bulk purchasing practices have a statistically significant positive effect on the operational performance of private hospital pharmacies.
Recommendations: The study recommends that Oasis Healthcare Group Limited strengthen its bulk purchasing framework by consolidating demand across its facilities, improving demand forecasting, establishing appropriate purchasing thresholds, and strengthening supplier negotiations.
Keywords: Bulk purchasing, centralized procurement, operational performance, private hospital pharmacies, Oasis Healthcare Group Limited.
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