Analysing the Impact of Procurement Planning and Vendor Management on Health Policy Performance at The Eastern Regional Hospital, Koforidua, Ghana

Abstract

Background: The effectiveness of health policies depends equally on the operational procedures that enable their execution and their design. Procurement planning and vendor management are critical components in the effective implementation of health policies, directly influencing the performance and outcomes of healthcare systems. Effective procurement planning ensures optimal resource allocation, minimising shortages and waste, while effective vendor management fosters strong supplier relationships, guaranteeing reliability and quality. Aim: This study aims to examine the effect of procurement planning and vendor management on health policy performance. Methods: This study utilised a mixed-methods approach, combining quantitative analysis of procurement data with qualitative interviews of hospital management, to elucidate the relationship between procurement procedures and enhanced health policy outcomes. This research utilised stratified and simple random sampling methods. Data were collected using a questionnaire and an interview protocol. Descriptive statistics were used to analyze the quantitative data, while content analysis was employed to analyze the qualitative data. A regression model was developed to demonstrate the relationship between variables. Results: The study used construct reliability to determine Cronbach’s Alpha, which tests the internal consistency of items on a scale. The research demonstrates that procurement planning had the most substantial effect on ERH performance, with a value of 0.813, followed by inventory management at 0.789, and vendor management at 0.767. The study results indicated that if all independent variables are maintained at zero, the performance of ERH will be 0.986. The study indicated that a one-unit increase in procurement planning would result in a 0.813 rise in ERH performance. This variable was significant as p=0.037 is below 0.05. The findings suggest that integrating advanced procurement planning methods and fostering collaborative vendor partnerships can significantly boost the efficiency and effectiveness of health policies, hence improving healthcare delivery and patient outcomes. Conclusion: This study provides practical insights that policymakers and hospital managers may utilise to enhance vendor management strategies and optimise procurement systems, ultimately advancing health policy objectives.  The study concluded that a procurement plan is a tool for executing a budget and should be developed by the user departments to prevent or minimise excess expenditures in the entities' budgets, ensuring that procurements occur only when sufficient funds are available for payment. The study also determined that vendor management favourably and significantly affects the performance of ERH.