Importance of Health in the Economy?
The healthcare industry is an aggregation and integration of sectors within the economic system that provides goods and services to treat patients, It includes the generation and commercialization of goods and services lending themselves to maintaining and re-establishing health.
There is a direct link between the health of a population and its productivity. Healthcare is both a consumer good as well as an investment good. As a consumption good, healthcare improves welfare, while as an investment commodity, healthcare enhances the quality of human capital and improves labour productivity, healthy children will also result in enhancement of school enrollment and makes them better able to learn hence providing job opportunities.
Its contribution to the economy of Kenya and to the Africa region?
According to World Bank (2004), high income countries spend on average 7% gross domestic product on health and low income countries spend on average only 4.2 % on the sector. This shows that developed countries spend a higher proportion of their gross domestic product on health which serves as a major driver for economic growth.
In 2020, health expenditure as a share of GDP for Kenya was 4.3 %. Between 2010 and 2020, health expenditure as a share of GDP in Kenya was decreasing on average by 1.69% each year, although before that, it grew from 2.6 % in 2002 to 5.4 % in 2010(World data atlas)
Role of Health in the Sector: Population/Economy/Family
Heath sector is mandated to produce good health, healthy people capable of participating in economic, social and political development of a country. Better health in Family businesses improves labor productivity as it reduces production losses caused by worker illness and permits the utilization of national resources that would otherwise become inaccessible because of ill health.
Health Challenges: are the corporate governance, strategy, succession challenges faced by these companies
In our years as IFFB consultants, we’ve seen that the healthiest family businesses are those that regularly engage in long-term strategic planning management and good corporate governance organizing all stakeholders behind a common goal.
This kind of exercise helps assure alignment among the family members and other key stakeholders, while also identifying strengths, weaknesses, opportunities and threats that have the power to shape the business’s future.
Strategic management planning can help a family business balance the legacy of its founders with the realities of transitioning a thriving business to future generations.
We’ve found through our experience in IFFB Consulting that businesses employing an open systems approach are healthier and better positioned to stand the test of time.
With an open systems approach, information passes freely throughout the various layers and departments that compose your family health business.
This can be especially important in a family business, where upcoming generations are expected to take over leadership of the company and guide it through healthy adaptations to meet market needs and empowering future leaders to voice recommendations and their vision for the future not only develops alignment, but also provides the guidance and confidence they’ll need to be successful when they take the helm.
Industry Association:
The desire to maintain family identity and reputation for generations, as well as the transmission of knowledge, is a distinctive in health sector this can be fulfilled through IFFB coaching session.
Some of the sectors that IFFB has partnered with is Kenya Healthcare Federation(KHF) We work closely to ensure proper governance and strategic management and execution conflict management and resolution practice are implemented.
Some Sector Clients we have Partners to support.:
