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INVESTMENT SENSITIVITY AND SERVICE LEVY TARIFF SCHEME: CASE STUDY OF EAST SURABAYA HOSPITAL Astasari, Arianti Widi; Oetomo, Wateno; Sajiyo, Sajiyo
INTERNATIONAL JOURNAL ON ADVANCED TECHNOLOGY, ENGINEERING, AND INFORMATION SYSTEM Vol. 3 No. 3 (2024): AUGUST
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/ijateis.v3i3.1172

Abstract

As one of the largest cities in Indonesia, the City of Surabaya has an obligation to provide excellent health services for its residents. Consequently, the Surabaya City Government is required to provide a general hospital that can receive referrals from the government-owned Community Health Centers. To fulfill this obligation, the Surabaya City Government built the East Surabaya Hospital, located in the Rungkut Sub-District. East Surabaya Hospital is a strategic project that necessitates an investment feasibility analysis. This analysis was conducted using the Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Benefit-Cost Ratio (BCR) parameters. Following the feasibility analysis, a sensitivity analysis was performed to examine changes in management costs and the health service levy rates for each tariff alternative. Based on the investment feasibility analysis of four tariff alternatives, two alternatives—alternative 1 and alternative 3—were deemed worthy investments. In contrast, alternatives 2 and 4 were found to be unfeasible, as the NPV parameter showed negative values and the IRR value was lower than the Minimum Acceptable Rate of Return (MARR). However, the sensitivity analysis indicated that alternatives 2 and 4 could become feasible if alternative 2’s management cost is reduced by 14.4% and alternative 4’s management cost is reduced by 2.8%. Conversely, alternative 1 might become unfeasible if the management cost increases by 7%, and alternative 3 might become unfeasible if the management cost increases by 3.1%.
Sensitivity Analysis of Revenue Potential in The Evaluation of East Surabaya Hospital Investment Astasari, Arianti Widi; Oetomo, Wateno; Sajiyo, Sajiyo
International Journal of Social Science and Community Service Vol. 2 No. 4 (2024): OCTOBER
Publisher : CV. Proaksara Global Transeduka

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.70865/ijsscs.v2i4.32

Abstract

As one of the largest cities in Indonesia, the City of Surabaya has an obligation to provide excellent health services for its residents. It goes without saying that Surabaya City Government is required to provide a General Hospital that can receive referrals from the government-owned Community Health Centers. For this reason, the Surabaya City Government built the East Surabaya Hospital which is located in Rungkut Sub-District. East Surabaya Hospital is a strategic project that requires investment feasibility analysis. The East Surabaya Hospital investment feasibility analysis was done by applying the Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP) and Benefit Cost Ratio (BCR) parameters. After the feasibility analysis results were obtained, a sensitivity analysis was done on changes in management costs and the amount of health service levy rates for each Fees alternative. Based on the results of the investment feasibility analysis of 4 (four) Fees alternatives, there are 2 alternatives that can be concluded as worthy investments, which are alternative 1 and alternative 3. Meanwhile, alternative 2 and alternative 4 are not feasible since the NPV parameter shows negative values and the IRR value is lower than the MARR value. However, based on sensitivity analysis, alternatives 2 and 4 can be feasible if alternative 2’s service rate is increased by 13.2%, and alternative 4’s service rate is increased by 2.3%. The opposite applies in alternative 1 where the investment might become unfeasible if the service rate is reduced by more than 5.4% and alternative 3 might become unfeasible if the service rate is reduced by more than 2.5%.