AFEBI Management and Business Review
Vol 6, No 1 (2021)

Hospital Location Selection Targeting Indonesian NHI Patients for a Sustainable Business

Arviansyah Arviansyah (Universitas Indonesia)
Ireneus Ezra Tjitradi (Universitas Indonesia)



Article Info

Publish Date
19 Aug 2021

Abstract

Finding an optimal location is a strategic decision, and an error of location judgment causes problems in the process and directly affects cost and profitability. Currently, Indonesian National Health Insurance (BPJS) program has high coverage growth in Indonesia; however, building hospitals targeting BPJS patients have faced some challenges and may lead to an unprofitable business. Therefore, location selection is a crucial aspect of a hospital’s operation, highly relates to profitability, and impacts business performance. Moreover, being profitable is not enough for businesses to survive in the long run; they have to be sustainable. The purpose of this study is to develop a reference for a location selection for healthcare management when building hospitals targeting BPJS patients. This paper utilizes the EGSEE framework for a sustainable business to evaluate comprehensive hospital location selection sub-factors. The study employs a systematic literature review and a modified Delphi method to examine the experts’ judgment. Finally, the Analytic Hierarchy Process is applied to develop the evaluation method. The result, social factor has the highest priority with a total weight of 42%, followed by economic factor (38%), and environment factor (20%). Besides hospital targeting BPJS patients have a sustainable business by being social, hospitals also contribute to increase the welfare of people living near the facility.

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Journal Info

Abbrev

ambr

Publisher

Subject

Economics, Econometrics & Finance

Description

AFEBI Management And Business Review (AMBR) is an academic journal which is published twice a year (June and December) by The Association of The Faculty of Economics and Business Indonesia. AMBR is aimed as an outlet for theoretical and empirical research in the field of management and business and ...