Economic Models of Healthcare Facilities toward the Regional Original Income

Abstract

The government as the owner of the hospitals acts as the executor of government tasks. Activities that are the task of the government have been designed in the government's annual planning through the departments and the National or Regional Development Planning Agency. These activities will be carried out in the form of a project or routine activity. In this case, a hospital is a place that must get subsidies from the government because of its characteristic as a public service. Moreover, the different facts look in reality. As an illustration, in several regional hospitals, there has been an economic behaviour of owners who expect the contribution of regional hospital (RSD) to the Regional Original Income and become a support for daily local government activities. This happens because the local governments lack of cash-flow to carry out government activities. The costs are taken from the hospital since it is a government institution that has the smoothest cash flow. The worst part of this situation is the use of hospital income to finance other government activities. This means the subsidies come from the sick people to the healthy people. It is noteworthy that in poor local governments, the government-owned hospital income risks to be reduced for other government activities.