Supplier Contracting and Perceived Healthcare Service Delivery in Selected Referral Hospitals in Kenya

Reliable access to pharmaceutical products is essential for continuity of clinical care, yet procurement arrangements in public hospitals are frequently challenged by delivery delays, supplier non-performance and uneven commodity availability. This article examined the association between supplier contracting and quality healthcare service delivery in selected referral hospitals in Kenya. The analysis was guided by Principal–Agent Theory and Institutional Theory. A quantitative descriptive cross-sectional survey covered personnel in five referral hospitals, with 213 valid questionnaire responses drawn from a target population of 630 through proportionate stratified sampling and a planned sample of 245. Supplier contracting was measured through perceived logistics reliability, supplier certification, enforcement of delivery timelines, and supplier financial and operational capacity; healthcare service delivery was assessed through five indicators of medicine access, supply continuity, patient satisfaction and treatment adherence. Descriptive analysis yielded an average supplier contracting item mean of 3.87 on a five-point scale. Supplier contracting was positively correlated with perceived healthcare service delivery (Spearman’s ρ = 0.40, p < .001). In a proportional-odds ordinal regression adjusting for supplier relationship management and strategic supplier evaluation, contracting remained positively associated with the ordered service delivery outcome (B = 0.230, p = .007; odds ratio = 1.259). The findings support the significance of contracting-related supplier assurance and delivery discipline, although the cross-sectional, self-reported evidence does not establish causation. Hospital procurement managers should strengthen documented supplier capacity checks, measurable delivery obligations, performance reviews and proportionate remedies while maintaining emergency responsiveness. Keywords: supplier contracting; pharmaceutical procurement; healthcare service delivery; contract compliance; referral hospitals; Kenya