The Differences Between Healthcare Finance Management In Ken

The differences between healthcare finance management in Kenya and the US

The foreign nation that I have chosen to work for is the Republic of Kenya; one of the East African countries. I will be working as a healthcare finance manager. The job description of a health finance manager in Kenya and health finance manager in the United States of America are slightly different and so are the education and experience requirements for the job. In addition, the salaries are also different as Kenyan healthcare finance managers are paid significantly less than their counterparts in the US. The first requirement on becoming a healthcare finance manager in Kenya is a bachelor’s degree in finance, accounting, or any business related degree.

It is also necessary that one has a master’s degree that is related to the above-mentioned fields of study. Earning a master of Health administration places one at a higher chance of securing a good job. On the other hand, in the US, candidates seeking the position of health finance managers are required to have at least a four-year bachelor’s degree from an accredited business school in fields such as economics, statistics, accounting, or finance. Major hospitals or healthcare organizations in the US prefer candidates who have earned a Master of Health Administration (Singh, 2015). The necessary and additional skills needed by healthcare finance managers in Kenya are quite similar to those in the US.

For example, it is mandatory that healthcare finance managers have experience in healthcare administration. Kenyan healthcare facilities typically do not hire finance managers with less than five years’ experience in healthcare finance administration. In fact, most healthcare organizations prefer candidates with close to ten years’ experience in the finance sector of a health organization (Barasa et al., 2017). Conversely, in the US, healthcare organizations do not emphasize experience as heavily; having the right educational qualifications and at least four years of relevant work experience generally suffices to secure a healthcare finance manager position.

This discrepancy can be attributed to the higher number of healthcare organizations in the US compared to Kenya. The primary roles of healthcare finance managers in Kenya include creating, reviewing, and reporting financial statements for departments and the organization as a whole; advising senior management on strategies to improve revenue; controlling risk by analyzing financial trends; and overseeing the finance department. In the US, these duties are similar, but an additional primary responsibility exists: allocating finances and resources among departments and advising the board on financial matters (Carnevale, Smith, & Strohl, 2013).

Regarding compensation, as of 2018, most healthcare finance managers in Kenya earn between $45,652 and $80,500 annually, depending on the size and specialization of their organization. In contrast, US counterparts earn between $64,000 and $174,000, with salaries influenced by experience and the institution. This significant pay gap reflects differences in healthcare system structure, resource allocation, and economic development levels.

Paper For Above instruction

The comparison between healthcare finance management systems in Kenya and the United States reveals significant differences influenced by economic development, healthcare infrastructure, and educational requirements. These differences impact the recruitment, responsibilities, and remuneration of healthcare finance managers in both countries, reflecting broader systemic disparities.

In Kenya, the healthcare system faces unique challenges, including limited resources and infrastructure, which influence the scope and depth of finance management practices. Accordingly, Kenyan healthcare finance managers are expected to have extensive experience—often close to ten years—to effectively oversee financial operations within resource-constrained environments. The mandatory educational background generally includes a bachelor’s degree in finance, accounting, or related fields, with many organizations favoring a master’s degree in health administration for advanced roles (Barasa et al., 2017). This reflects a system where experience and formal education are critical due to the evolving and often complex financial governance required in Kenyan healthcare settings.

In contrast, the US healthcare system, fueled by higher resource availability and a more extensive network of healthcare institutions, places considerable emphasis on formal education. While experience remains valuable, the minimal requirement for a degree plus four years of work experience suffices for many positions, owing to the established infrastructure and standardized practices (Carnevale, Smith, & Strohl, 2013). Additionally, the US healthcare finance managers have broader responsibilities, including resource allocation across departments and advising on financial policies at the board level, indicating a more decentralized and specialized approach to healthcare management (Singh, 2015).

Salaries for healthcare finance managers further illustrate systemic differences. Kenyan managers' earnings range from approximately $45,652 to $80,500 annually, which, relative to local economic conditions, constitutes a modest salary. Conversely, in the US, salaries significantly exceed this range, reflecting the higher costs of healthcare, greater resource availability, and the value placed on specialized financial expertise (Harris-Kojetin et al., 2016). The disparities in pay are not solely economic but also indicative of the differing importance placed on finance management within the healthcare systems of both nations.

These systemic differences extend beyond salary and education. In Kenya, the healthcare system is largely public with limited private sector involvement, which influences the scope of financial oversight and resource management. The key roles of healthcare finance managers in Kenya involve financial reporting, revenue enhancement strategies, risk control, and overseeing the finance department. Meanwhile, in the US, the scope is broader, including strategic resource allocation and providing financial advice directly to the board of directors, reflecting a more complex and hierarchical system (Carnevale, Smith, & Strohl, 2013).

The operational challenges faced by Kenya, such as limited financial resources and infrastructural constraints, necessitate finance managers to be highly adaptable and skilled in managing scarce resources efficiently. Their extensive experience compensates for systemic limitations, presenting a role that is as much about resourcefulness as it is about financial oversight. Conversely, in the US, the abundance of resources and institutional structures allows finance managers to operate within a more formalized framework, emphasizing specialization and strategic oversight.

Furthermore, these disparities influence healthcare outcomes and access to services. In Kenya, financial management plays a critical role in ensuring the organization’s sustainability amid resource limitations. Effective financial oversight directly impacts the quality and accessibility of healthcare services. Conversely, in the US, advanced financial management practices support complex insurance systems, cost control measures, and quality assurance programs, contributing to higher healthcare standards overall (Harris-Kojetin et al., 2016).

In conclusion, the differences in healthcare finance management between Kenya and the United States highlight the influence of economic development, systemic structure, and resource availability on the roles, responsibilities, education, and compensation of healthcare finance managers. Understanding these differences provides insight into how systemic factors shape the strategic role of finance professionals in healthcare and underscores the importance of context-specific approaches to healthcare management.

References

• Barasa, E. W., Cleary, S., Molyneux, S., & English, M. (2017). Setting healthcare priorities: a description and evaluation of the budgeting and planning process in county hospitals in Kenya. Health Policy and Planning, 32(3), 433–441.
• Carnevale, A. P., Smith, N., & Strohl, J. (2013). Recovery: Job growth and education requirements through 2020. Georgetown University Center on Education and the Workforce.
• Harris-Kojetin, L., Sengupta, M., Park-Lee, E., Valverde, R., Caffrey, C., Rome, V., & Lendon, J. (2016). Long-term care providers and services users in the United States: data from the National Study of Long-Term Care Providers. Vital & Health Statistics. Series 3, Analytical and Epidemiological Studies, (38), 1–104.
• Singh, D. A. (2015). Essentials of the US health care system. Jones & Bartlett Learning.