<![CDATA[Hospital industry in Indonesia is currently experiencing various environmental changes such as government regulations related to BPJS and the increasing number of hospitals. Therefore, hospitals, particularly Hermina Tangkubanprahu, must formulate their business strategies. This study aims to determine the environmental conditions of the hospital together with the appropriate strategies. The data of this descriptive research were obtained through observations, interviews, questionnaires, and documentation and were analyzed using IFE matrix, EFE matrix, SWOT matrix, large strategy matrix, IE matrix, and QSPM matrix.The results show that Hermina Tangkubanprahu is above the average and is able to overcome its weakness by optimizing its strength. In addition, it is able to respond to opportunities by overcoming all threats. A viable strategy for the hospital, based on the QSPM matrix, is market penetration.Keywords: internal environment, external environment, formulation strategy, IFE matrix, EFE matrix, SWOT matrix, grand strategy matrix, IE matrix, QSPM matrix]]>
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