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.

Highlights

  • Good health and well-being is among the United Nations' sustainable development goals

  • It resolves critical questions by learning the subject based on previous works, deeply explores existing works on a particular subject, and provides a conceptual foundation for future study [34]

  • The response rate for the second stage questionnaire was 100% and a consensus was reached with the nine sub-factors and their category classification obtained more than 70 percent vote of the panel members

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Summary

Introduction

Good health and well-being is among the United Nations' sustainable development goals. Realizing universal health coverage (UHC) is essential to determine good health and well-being. UHC continues to be a challenge for nations worldwide. According to WHO and the World Bank [1], more than half of the global population doesn’t have access to necessary health care. Indonesia’s response to provide universal health coverage was establishing National Health Insurance (NHI) for all residents in 2014. The deployment of NHI has intensified competition in the local healthcare industry. Consumer health awareness and demand for medical services are increasing, encouraging new hospital establishments. Hospital is considered a business since it produces something in exchange for payment to obtain profit

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