ACCOUNTING INFORMATION AND PERFORMANCE MANAGEMENT OF HEALTH FACILITIES IN RWANDA A CASE STUDY OF GITWE HOSPITAL

Abstract

This study entitled “the accounting information and performance management of health facilities in Rwanda” was guided by the overall objective which was to assess whether accounting information influences the performance management of health facilities in Rwanda. The specific objectives were to find out the relationship between accounting and performance of Hospital, to analyze how accounting information is critical in managing Hospital’s operations to realize its objectives, to investigate the Hospital’s strategies for improving its performance management. The research scope was very important and significant to researcher and those institutions deal with health institutions in Rwanda. This research considered the period scope of 4 fiscal years from 2010-2011 to 2013-2014.It was carried out at Gitwe Hospital in Ruhango District. The researcher reviewed the literature related to accounting and performance management and found research gap. The conceptual framework showing the relationship between the variables and the factors that intervene in their relationship. The researcher designed a descriptive and analytical research design based on qualitative and quantitative data while the population was 125 employees of Gitwe Hospital and the sample size was 62 respondents selected from the total population using Morgan’s formula with purposive sampling technique. The researcher collected primary data using questionnaires and interviews while documentary review was used for secondary data. Collected data was presented using tables and figures while frequencies and percentages were used to analyze and interpret the collected data. Statistical Packaging for Social Science program was used to analyze data. The study found that interpretation of financial statements facilitates, technology, globalization, Technology was the main factors that affect the level of AI in Gitwe hospital. The level of better performance in Gitwe hospital was very high according to the total revenue, but the use of expenses and cost in Gitwe hospital was not optimal, because this study found low correlation between AI operations and performance indicators in Gitwe hospital. The respondents perceived that the focus on AI helps institution evaluating their performance, through the use of high technology and Technology. The researcher found that there was a positive relationship between AI and better performance of Gitwe hospital. The researcher used Pearson correlation coefficient and found that there is a very high relationship between Accounting information and performance of Gitwe hospital. This study concluded that there is also a boost to the dynamic nature of firms with a greater flow of information between different staff levels and the possibility of new business on the network and improved external relationships for the firm. The study also recommended that Health facilities should optimize their total expenses during the use of AIS in their routine activities.