What Encourages Owners, Managers, and Employees to Cooperate in Healthcare Institution

Abstract

The economic behaviour of the hospital was discussed through two approaches, namely (1) the company standard model and (2) the non-profit hospital model. The company standard model refers to the behavior of institution in maximizing profits. The definition of profit or non-profit is not understandable in Indonesia. The limitation of the non-profit is that there is no party may receive or ask for the dividend (SHU). The dividend means the difference between income and cost or called as profit in a general business institution. In the United States, two other characteristics distinguish non-profit and for-profit status. The first, non-profit institutions do not need to pay corporate taxes and are often exempt from property taxes, land taxes, and sales taxes. The second, the donations to non-profit institutions will reduce taxes for donors. The definition of non-profit in the United States is still difficult to be implemented in Indonesia. The tax treatment is relatively similar between non-profit and for-profit hospitals. Thus, in the hospital sector in Indonesia, it can be stated that during the transition from social to socio-economic institutions, the overview of for-profit and non-profit forms is still vague.