Asian Journal of Economics, Business and Accounting

Most health systems continue to depend on more integrated data that lead to better health outcomes; hence, their cost dynamics must be clearly understood during implementation. The purpose of this study was to analyze and understand the effect of operational costs on implementation of centralized data healthcare management system in Nandi County, Kenya. The study was supported by Resource based view theory. The quantitative research approach used descriptive and regression analysis to test the impact of operational costs. The study whose target population consisted of 80 healthcare professionals in Nandi County, including Senior Hospital Manager, Hospital ICT Managers and Medical Officers thus provided rich insight into how cost aspects determine the effectiveness of centralized data healthcare management from a response rate as high as 87%. The findings suggested that efficient management of operations costs, especially regarding budget planning and adjustment, facilitates successful implementation through infrastructural and resource allocation. This study, therefore, underscores the fact that focused financial strategies, hand in hand with strong leadership and competent staff, are crucial in sustaining long-term efficiency and resilient health data systems in resource-constrained settings such as Nandi County. The study recommended that governments must carefully evaluate and allocate resources to cover expenses such as software development, hardware procurement, staff training and ongoing maintenance.