Academic journal article Academy of Strategic Management Journal

The Influence of Institutional Partnership and Hospital Reputation on Hospital Performance in West Kalimantan

Academic journal article Academy of Strategic Management Journal

The Influence of Institutional Partnership and Hospital Reputation on Hospital Performance in West Kalimantan

Article excerpt


Research Background

West Kalimantan region has an area of 146,807 km2 with a population of 4,789,574 people in 2015 has 36 general hospitals and 8 special hospitals. However, the performance of hospital services in the region tends to be not optimal which is indicated by still not able to the hospital management in reaching the set target. Based on data in 2015 revealed that the level of hospital service standard achievement includes BOR (Bed Occupancy Rate) that is the percentage of beds occupied in one time unit only reach 51.80%. Bed Turn Over (BTO) 39.19 times, and Turn of Interval (TOI) 4.49 days.

Based on the preliminary survey (2017) of 15 general hospitals in West Kalimantan seen from health service quality indicator, the average performance achievement of general hospital is presented in the following table:

Based on Table 1 above, there are 4 (four) items from indicators that are still below ideal achievement, they are: BOR, LOS, TOI and BTO. While the NDR (Net Death Rate) is the death rate 48 hours after treated every 1000 patients out and GDR (Gross Date Rate) is the death rate for every 1000 patients out of ideal category. BOR is also used in the research of (La Ode Kamalia, Alida Palilati, Endro Sukotjo & La Hatani, 2015) which measures the performance of General Hospital in Southeast Sulawesi based on Bed Occupancy Ratio (BOR) dimension, cost recovery, market share, employee satisfaction, patients and their families satisfaction. In addition, there is an increase in the number of passengers destined for Malaysia, among them for treatment, with the number of passengers sick during the year 2015 as many as 445 people, thus increasing competition to get patients.

So based on the above description, it can be said that the performance of hospitals in West Kalimantan cannot be said superior. It is allegedly caused by poor hospital reputation. This is indicated by the lack of public confidence in the credibility of hospital's services. So many Indonesian citizens who trust hospitals abroad to treat certain diseases. It shows that not all hospitals in Indonesia have service advantages. Particularly at local government-owned hospitals where the services provided are sometimes slow in dealing with accident patients or emergency patients. Whereas the local government-owned hospitals in terms of financing are financed partly by the local government concerned. This causes some patients to choose alternative treatment paths such as acupuncture, reflection, and herbal remedies. Meanwhile, according to (Fombrun, 2001), there are some basic elements that should be the center of attention in improving the reputation namely: credibility, reliability, trustworthiness, and responsibility.

Meanwhile, (Hall & lee, 2014) show a positive relationship between company performance and company reputation and found the importance of corporate reputation as an important strategic asset to be managed by the company. (Yih-Chang Ou & Li-Chang Hsu, 2013) show that the company's reputation moderated the relationship between human capital and innovative performance. In addition, (Iwu-Egwuonwu, 2014) finds that cultivating a strong reputation is a necessary foundation for companies to beat competition, improve market prospects, and to warn ongoing financial performance and existence.

The low performance and reputation of the hospital is alleged due to the weakness in the development of partnerships implemented by the hospital. The current phenomenon shows the still low ability of hospital management in developing and maintaining strategic partnership with various parties. Among them are partnerships with patients, where only high-class hospitals are already practicing a better customer relationship program. In addition there are still some weaknesses in the development of partnerships with suppliers that is in terms of selection of qualified and professional suppliers. Some hospitals still apply unprofessional procurement tenders where only companies with proximity to directors can win the tender, so that it risks the quality of the required goods. …

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