Indonesia Hospital Cost Analysis: a Micro-Costing Approach

Ragil Setia Dianingati, Arthorn Riewpaiboon, Sitaporn Youngkong

Abstract

Efforts to develop the financing methods is needed to strengthen the Indonesia’s recently implemented universal health coverage system. Hospital cost data is urgently needed to calculate the unit cost of medical services that is important to evaluate the reimbursement rate setting. The most recent approach to calculate unit cost of medical services in hospital is micro-costing approach. This study aimed to perform a unit cost calculation using micro-costing approach in Indonesia’s district hospital in June-Dec 2016 from the provider perspective. The costing study followed the standard costing method and financial data were obtained through the hospital financial reports. Some financial data were directly measured since this study used bottom-up approach. This study showed that the unit cost was not relevant with the reference price set up by the government. It could be caused by different cost items and cost objects that had been employed in the study since the government tariff’s did not have clear and detailed information about the source of cost calculation. Micro-costing approach was useful as a precise method to calculate unit cost, even though rigorous efforts were needed to complete the data.

Keywords

Unit Cost; Micro-costing Approach; Hospital; Indonesia

Full Text:

PDF

References

Cao, P., Toyabe, S., & Akazawa, K., 2006. Development of a Practical Costing Method for Hospitals. Tohoku J Exp Med, 208(3), pp. 213-224.

Cao, P., Toyabe, S., Kurashima, S., Okada, M., & Akazawa, K., 2006. A Modified Method of Activity-Based Costing For Objectively Reducing Cost Drivers in Hospitals. Methods Inf Med, 45(4), pp. 462-469.

Chatterjee, S., Levin, C., & Laxminarayan, R., 2013. Unit Cost of Medical Services at Different Hospitals in India. PLoS One, 8(7), pp. e69728.

Javid, M., Hadian, M., Ghaderi, H., Ghaffari, S., & Salehi, M., 2015. Application of the Activity-Based Costing Method for Unit-Cost Calculation in a Hospital. Glob J Health Sci, 8(1), pp. 165-172.

Kementerian Kesehatan Republik Indonesia., 2016. Standar Tarif Pelayanan Kesehatan dalam Penyelenggaraan Program Jaminan Kesehatan. Jakarta: Ministry of Health.

Riewpaiboon, A., & Kumluang, S., 2011. Cost Analysis for Reimbursement-Rate Setting of Hospital Pharmaceutical Services in Thailand. Int J Pharm Pract, 19(5), pp. 333-341.

Riewpaiboon, A., Malaroje, S., & Kongsawatt, S., 2007. Effect of Costing Methods on Unit Cost of Hospital Medical Services. Trop Med Int Health, 12(4), pp. 554-563.

Schulman-Marcus, J., Prabhakaran, D., & Gaziano, T.A., 2010. Pre-hospital ECG for Acute Coronary Syndrome in Urban India: a Cost-Effectiveness Analysis. BMC Cardiovasc Disord, 10, pp.13.

Teerawattananon, Y., Kingkaew, P., Koopitakkajorn, T., Youngkong, S., Tritasavit, N., Srisuwan, P., & Tantivess, S., 2016. Development of a Health Screening Package Under the Universal Health Coverage: The Role of Health Technology Assessment. Health Econ, 25 Suppl 1, pp. 162-178.

WHO., 2013. Research for Universal Health Coverage. Retrieved from Geneva.

Yereli, A.N., 2009. Activity-based Costing And Its Application in a Turkish University Hospital. Aorn j, 89(3), pp. 573-591.

Younis, M.Z., Jabr, S.F., Plante, C., & Forgione, D.A., 2013. Estimation of Health Care Costs and Cost Recovery: the Case of Rafidya Hospital in Palestine. J Health Care Finance, 39(4), pp. 44-54.

Refbacks

  • There are currently no refbacks.