Qualified and motivated human resources are essential for adequate health service provision. Problems relating to service provision due to poor performance of health workers are the main reason this research study is being conducted. The research aimed to establish the influence of performance management on patient satisfaction. The study was conducted among consenting and volunteering clinical staff and patients at Mwingi Sub-County and Kitui County Public Hospital (District Hospitals) with a convenient sample of 54 clinicians and 540 patient respondents. A descriptive cross-sectional study design was applied. Interviewer administered questionnaires were used in the collection of data which was then analyzed to establish the relationships between performance management and patient satisfaction. 44 clinicians and 429 patients returned their questionnaires. On correlation analysis of study variables, performance planning, performance measurement, performance feedback and performance rewarding were found to be moderately, positive and significantly related to patient satisfaction for the combined model, Mwingi District Hospital and Kitui District Hospital. Regression analysis also revealed that performance planning, performance measurement, performance feedback and performance rewarding had a positive and significant influence on patient satisfaction in the three models i.e. Mwingi District Hospital and Kitui District Hospital and the combined model. Recommendations on improvement in the existing performance management systems were made to the healthcare human resource managers and hospital administrators.