Effects of Strategic Planning on Performance of Healthcare Institution; a Case Study of Aga Khan Hospital Mombasa in Kenya

The purpose of this study was to determine the effect of strategic planning on the performance of health institutions. The specific objectives of this study were to establish how stakeholder involvement, strategy implementation, and strategic resource allocation, affect the performance of health institutions in Kenya. The research applied causal effect design to establish the relationship between strategic planning factors and business performance. In this study, the target population was 105 permanent employees of Aga Khan Hospital, Mombasa. The study used questionnaires as the instrument throughout the research process; the researcher totally relied on the honesty and accuracy of the participants’ responses. The researcher analyzed data collected from the questionnaires through the use of SPSS Version 22 which is a modern way of data analysis with a high degree of accuracy. The variables were tested using Croncbach’s alpha to find the validity of the questionnaire. The findings of the research indicate that stakeholder involvement, strategy implementation, and strategic resource allocation, all affect hospital performance either singly or in combination. The researcher’s conclusion was that as much as hospitals always conduct stakeholder involvement, implementation, and resource allocation, they fail when it comes to involving all levels of management because they don’t do it equitably and fairly. The researcher recommended that to improve performance, hospitals can create value and grow by using stakeholder involvement, strategic plan implementation and resource allocation. Also there is need for other researchers to consider larger and different sample sets so to take into consideration the different environment in which some of them will operate.