Hospital Location Selection Targeting Indonesian NHI Patients for a Sustainable Business

Authors

  • Ireneus Ezra Tjitradi Universitas Indonesia
  • Arviansyah Arviansyah Universitas Indonesia
  • Ireneus Ezra Tjitradi Universitas Indonesia

DOI:

https://doi.org/10.47312/ambr.v6i1.416

Keywords:

BPJS, hospital location selection, JKN, national health insurance, sustainable business

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.

Downloads

Download data is not yet available.

References

. WHO and . The World Bank, Tracking Universal Health Coverage: 2017 Global Monitoring Report, 2017, p. 88.

A. M. Brockett and Z. Rezaee, Corporate sustainability : Integrating performance and reporting, Wiley, 2012.

S. J. Appold, "Agglomeration, Interorganizational Networks, and Competitive Performance in the U.S. Metalworking Sector," Economic Geography, vol. 71, p. 27, 1 1995.

H. Şen and M. F. Demiral, "Hospital Location Selection with Grey System Theory," European Journal of Economics and Business Studies, vol. 5, p. 66, 8 2016.

G. T. Ross and R. M. Soland, "A multicriteria approach to the location of public facilities," European Journal of Operational Research, vol. 4, p. 307–321, 5 1980.

C.-R. Wu, C.-T. Lin and H.-C. Chen, "Optimal selection of location for Taiwanese hospitals to ensure a competitive advantage by using the analytic hierarchy process and sensitivity analysis," Building and Environment, vol. 42, p. 1431–1444, 3 2007.

J. D. Sachs, "From Millennium Development Goals to Sustainable Development Goals," The Lancet, vol. 379, p. 2206–2211, 6 2012.

M. Morgan, N. Mays and W. W. Holland, "Can hospital use be a measure of need for health care?," Journal of Epidemiology & Community Health, vol. 41, p. 269–274, 12 1987.

T. F. Main, "The hospital as a therapeutic institution," Bulletin of the Menninger Clinic, vol. 10, p. 66, 1946.

S. J. M. van Hoof, M. E. A. L. Kroese, M. D. Spreeuwenberg, A. M. J. Elissen, R. J. Meerlo, M. M. H. Hanraets and D. Ruwaard, "Substitution of hospital care with primary care: defining the conditions of Primary Care Plus," International Journal of Integrated Care, vol. 16, 2016.

S. V. Katikireddi, G. Cezard, R. S. Bhopal, L. Williams, A. Douglas, A. Millard, M. Steiner, D. Buchanan, A. Sheikh and L. Gruer, "Assessment of health care, hospital admissions, and mortality by ethnicity: population-based cohort study of health-system performance in Scotland," The Lancet Public Health, vol. 3, p. e226–e236, 5 2018.

G. Fiorentini, E. Iezzi, M. L. Bruni and C. Ugolini, "Incentives in primary care and their impact on potentially avoidable hospital admissions," The European Journal of Health Economics, vol. 12, p. 297–309, 2011.

H. Levy and D. Meltzer, "What do we really know about whether health insurance affects health," Health policy and the uninsured, p. 179–204, 2004.

H. Levy and D. Meltzer, "The Impact of Health Insurance on Health," Annual Review of Public Health, vol. 29, p. 399–409, 4 2008.

E. S. Fisher, "Medical care-is more always better?," New England Journal of Medicine, vol. 349, p. 1665–1667, 2003.

S. C. Coleman and A. Kellerman, "Hidden Costs, Value Lost: Uninsurance in America," Washington, DC: Institute of Medicine, 2003.

W. Miller, E. R. Vigdor and W. G. Manning, "Covering The Uninsured: What Is It Worth?," Health Affairs, vol. 23, p. W4–157–W4–167, 1 2004.

T.-M. Cheng, "Taiwan's New National Health Insurance Program: Genesis And Experience So Far," Health Affairs, vol. 22, p. 61–76, 5 2003.

W. "The World Health Report. Health Systems Financing: The Path to Universal Coverage. Geneva: WHO; 2010," Contract No.: WHO Report ISBN, vol. 978, p. 4, 2018.

A. Griffiths, Sustainability: The corporate challenge of the 21st century, Allen & Unwin, 2000.

"World Commission on Environment and Development: Our common future," 1987.

P. Bansal and M. R. DesJardine, "Business sustainability: It is about time," Strategic Organization, vol. 12, p. 70–78, 2 2014.

Z. Rezaee, "Business sustainability research: A theoretical and integrated perspective," Journal of Accounting Literature, vol. 36, p. 48–64, 6 2016.

C. V. Kidd, "The evolution of sustainability," Journal of Agricultural and Environmental Ethics, vol. 5, p. 1–26, 3 1992.

H. R. Bowen, Social responsibilities of the businessman, New York: Harper & Brothers, 1953.

P. Taticchi and M. Demartini, "A Modern Definition of Corporate Sustainability," in Corporate Sustainability in Practice, Springer International Publishing, 2020, p. 65–74.

A. B. Carroll, "A three-dimensional conceptual model of corporate performance," Academy of management review, vol. 4, p. 497–505, 1979.

J. Elkington, "Partnerships from cannibals with forks: The triple bottom line of 21st-century," Environmental Quality Management, vol. 8, no. 1, pp. 37-51, 1998.

Securities and Exchange Commission, "Commission guidance regarding disclosure related to climate change," 2010.

E. Burdurlu and E. Ejder, "Location Choice for Furniture Industry Firms by using Analytic Hierarchy Process (AHP) Method," Gazi University Journal of Science, vol. 16, no. 2, pp. 369-373, 2003.

B. Kobu, Üretim Yönetimi, Genişletilmiş ve Güncellenmiş 16, İstanbul: Beta Basım Yayım Dağıtım A.Ş., 2013.

R. Z. Farahani, M. SteadieSeifi and N. Asgari, "Multiple criteria facility location problems: A survey," Applied Mathematical Modelling, vol. 34, p. 1689–1709, 7 2010.

G.-S. Liang and M.-J. J. Wang, "A fuzzy multi-criteria decision-making method for facility site selection," The International Journal of Production Research, vol. 29, p. 2313–2330, 1991.

C. Okoli and K. Schabram, "A Guide to Conducting a Systematic Literature Review of Information Systems Research," SSRN Electronic Journal, 2010.

A. Fink, Conducting research literature reviews : from the internet to paper, Thousand, Oaks: SAGE, 2014.

D. M. Rousseau, J. Manning and D. Denyer, "Evidence in Management and Organizational Science: Assembling the Fieldtextquotesingles Full Weight of Scientific Knowledge through Syntheses," SSRN Electronic Journal, 2008.

J. W. Murry and J. O. Hammons, "Delphi: A Versatile Methodology for Conducting Qualitative Research," The Review of Higher Education, vol. 18, p. 423–436, 1995.

M. Khaksefidi and M. Miri, "Hospital Location in the Southern Fars Province by Using Multi Criteria Decision Making Techniques," European Online Journal of Natural and Social Sciences: Proceedings, vol. 4, p. pp–638, 2016.

C. A. R. Assad, "Building GIS framework based on multi criteria analysis for hospital site selection in developing countries," International Journal of Computer Techniques, vol. 6, p. 1–6, 2019.

N. Sharmin and M. N. Neema, "A GIS-based multi-criteria analysis to site appropriate locations of hospitals in Dhaka City," Hospital, vol. 8, p. 0–37, 2013.

J. I. Kim, D. M. Senaratna, J. Ruza, C. Kam and S. Ng, "Feasibility study on an evidence-based decision-support system for hospital site selection for an aging population," Sustainability, vol. 7, p. 2730–2744, 2015.

F. Rahimi, A. Goli and R. Rezaee, "Hospital location-allocation in Shiraz using Geographical Information System (GIS)," Shiraz E-Medical Journal, vol. 18, 7 2017.

M. M. Islam, T. Mahmud and M. S. Hossain, "Belief-rule-based intelligent decision system to select hospital location," Indonesian Journal of Electrical Engineering and Computer Science, vol. 1, p. 607–618, 2016.

Y. Çelikbilek, "Group Decision Making for Hospital Location Selection Using VIKOR under Fuzzy Environment," İstanbul Gelişim Üniversitesi Sağlık Bilimleri Dergisi, p. 435–450, 2018.

S. Halil, "Hospital location selection with ARAS-G," The Eurasia Proceedings of Science Technology Engineering and Mathematics, p. 359–365, 2017.

P. Kumar, R. K. Singh and P. Sinha, "Optimal site selection for a hospital using a fuzzy extended ELECTRE approach," Journal of Management Analytics, vol. 3, p. 115–135, 4 2016.

T. Mahmud, J. Sikder and S. Tripura, "Knowledge-based Decision Support System to Select Hospital Location," IOSR Journal of Computer Engineering, vol. 20, no. 3, pp. 39-47, 2018.

C.-T. Lin, C.-R. Wu and H.-C. Chen, "Selecting the Location of Hospitals in Taiwan to Ensure a Competitive Advantage via GRA.," Journal of Grey System, vol. 18, 2006.

K. K. F. Yuen, "Using the primitive cognitive network process for location analysis: comparisons with the analytic hierarchy process," Journal of Applied Operational Research, vol. 4, p. 194–202, 2012.

S. Önüt, U. R. Tuzkaya and B. Kemer, "An analytical network process approach to the choice of hospital location," Journal of Engineering and Natural Sciences, vol. 25, p. 367–379, 2008.

A. Soltani, R. B. Inaloo, M. Rezaei, F. Shaer and M. A. Riyabi, "Spatial analysis and urban land use planning emphasising hospital site selection: a case study of Isfahan city," Bulletin of Geography. Socio-economic Series, vol. 43, p. 71–89, 2019.

M. Kaveh, M. Kaveh, M. S. Mesgari and R. S. Paland, "Multiple criteria decision-making for hospital location-allocation based on improved genetic algorithm," Applied Geomatics, vol. 12, p. 291–306, 2020.

F. Eldemir and I. Onden, "Geographical Information Systems and Multicriteria Decisions Integration Approach for Hospital Location Selection," International Journal of Information Technology & Decision Making, vol. 15, p. 975–997, 9 2016.

A. Kmail, J. Jubran, W. Sabbah and P. Jenin, "Coupling GIS-based MCA and AHP techniques for Hospital Site Selection," International Journal of Computer Science and Information Security (IJCSIS), vol. 15, 2017.

A. H. Ahmed, H. Mahmoud, A. M. M. Aly and others, "Site suitability evaluation for sustainable distribution of hospital using spatial information technologies and AHP: A case study of Upper Egypt, Aswan City," Journal of Geographic Information System, vol. 8, p. 578, 2016.

E. A. Adalı and A. Tuş, "Hospital site selection with distance-based multi-criteria decision-making methods," International Journal of Healthcare Management, p. 1–11, 2019.

S. Hashemkhani Zolfani, M. Yazdani, A. Ebadi Torkayesh and A. Derakhti, "Application of a gray-based decision support framework for location selection of a temporary hospital during COVID-19 pandemic," Symmetry, vol. 12, p. 886, 2020.

C.-T. Lin and M.-C. Tsai, "Development of an expert selection system to choose ideal cities for medical service ventures," Expert Systems with Applications, vol. 36, p. 2266–2274, 2009.

C.-T. Lin and M.-C. Tsai, "Location choice for direct foreign investment in new hospitals in China by using ANP and TOPSIS," Quality & Quantity, vol. 44, p. 375–390, 2010.

S. Behzadi, A. A. Alesheikh and others, "Hospital site selection using a BDI agent model," International Journal of Geography and Geology, vol. 2, p. 36–51, 2013.

M. Dell’Ovo, S. Capolongo and A. Oppio, "Combining spatial analysis with MCDA for the siting of healthcare facilities," Land Use Policy, vol. 76, p. 634–644, 2018.

E. M. Khotbehsara and H. Safari, "A Systematic Review of Affective Factors on Locating Specialized Hospitals," Civil Engineering Journal, vol. 4, p. 2210–2217, 2018.

J.-E. Chiu and H.-H. Tsai, "Applying analytic hierarchy process to select optimal expansion of hospital location: The case of a regional teaching hospital in Yunlin," in 2013 10th International Conference on Service Systems and Service Management, 2013.

S. Abdullahi, A. R. b. Mahmud and B. Pradhan, "Spatial modelling of site suitability assessment for hospitals using geographical information system-based multicriteria approach at Qazvin city, Iran," Geocarto International, vol. 29, p. 164–184, 2014.

D. Chatterjee and B. Mukherjee, "Potential hospital location selection using AHP: a study in rural India," International Journal of Computer Applications, vol. 71, 2013.

H. A. Mohammed, M. N. Ahmed and A. J. Alsaad, "Evaluation of Sustainable Site Selection Using Analytical Hierarchy Process for Hospitals: Karbala City as A Case Study," International Journal of Engineering & Technology, vol. 7, p. 347–350, 2018.

T. Şahin, S. Ocak and M. Top, "Analytic hierarchy process for hospital site selection," Health Policy and Technology, vol. 8, p. 42–50, 2019.

E. W. T. Ngai and E. W. C. Chan, "Evaluation of knowledge management tools using AHP," Expert Systems with Applications, vol. 29, p. 889–899, 11 2005.

M. H. Vahidnia, A. A. Alesheikh and A. Alimohammadi, "Hospital site selection using fuzzy AHP and its derivatives," Journal of Environmental Management, vol. 90, p. 3048–3056, 7 2009.

D. Chatterjee, "Can fuzzy extension of Delphi-analytical hierarchy process improve hospital site selection?," International Journal of Intercultural Information Management, vol. 4, p. 113–128, 2014.

A. Soltani and E. Z. Marandi, "Hospital site selection using two-stage fuzzy multi-criteria decision making process," Journal of Urban and environmental engineering, vol. 5, p. 32–43, 2011.

B. D. Weinstein, "What is an expert?," Theoretical medicine, vol. 14, p. 57–73, 1993.

O. Helmer and N. Rescher, "On the epistemology of the inexact sciences," Management science, vol. 6, p. 25–52, 1959.

T. L. Saaty, "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, vol. 48, p. 9–26, 9 1990.

Downloads

Published

2021-08-19

Issue

Section

Articles