ABSTRACT The general purpose of the study was to determine the relationship between inventory control and financial performance of private health institutions in Uganda and the specific objectives were; to examine the effect of material handling on financial performance of Nsambya hospital, Makindye division, to establish the effect of purchase orders on the financial performance ofNsambya hospital, Makindye division and to determine the effect of reverse logistics on the financial performance of Nsambya Hospital, Makindye division. The study used a survey research design and data was collected from the 50 employees ofNsabya Hospital. The findings of the study revealed that there is a positive relationship between material handling and financial performance of private health institutions as the respondents agreed with most of the statements that were used to measure this objectives and it was found out that Materials are not well stored under the right temperature and the respondents also revealed that the hospital does not have enough store for all the materials. The findings of the steady also greatly revealed that purchase orders improve the financial performance of private health institutions in Makidye division if well used as respondents agreed with all the statements that were used to measure this objective. The findings of the study further revealed that reverse logistics have a positive impact on the financial performance of private health institutions in Makindye division. The study however revealed that materials are not reused at Nsambya hospital and also that proper disposal ofthe used materials is not ensured. The study recommended that the hospital should construct a spacious store for keeping all the materials, the management should ensure that materials are well stored under the right temperature, more emphasis should be put on thorough use ofpurchase orders as it was revealed that they enhance the financial performance of private health institutions greatly, the management should ensure that materials are reused in order to reduce on over expenditure and that the management should ensure that there is an improvement in disposal ofthe used materials.
