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In the Circular Flow model, a firm or business institution is one of the four factors forming the economic system in society. This section discusses the hospital as a firm because the hospital can be thought of as a place that produces health services from a variety of inputs. Thus, the concept of production can be used in hospitals because the managers are faced with the fact that to produce service products, the hospital can be said to be a production place that carries out the process systematically. The factory is very complex with complicated processes and is in an ever-changing environment. To understand this process can be seen in the case handling cases of Sectio Caesaria (SC) in a teaching hospital. Sectio Caesaria case handling is considered as a production line in the hospital. With medical names, these production lines are referred to as clinical pathways.
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