How Social Are Hospital-Based Listed Companies in Indonesia?

PURPOSE This paper aims to analyze the social aspects of publicly listed hospital companies in Indonesia. Many hospitals in Indonesia are operated under corporate ownership and have conducted Initial Public Offerings (IPOs) to obtain capital for expanding healthcare services across regions. At the same time, these hospitals participate in social programs by serving patients under the national health insurance scheme (BPJS - Badan Penyelenggara Jaminan Sosial or the Social Health Insurance Administration Body). The government also involved private hospital to service BPJS patients.

DESIGN/METHODOLOGY/APPROACH The research method of the paper is qualitative with a descriptive secondary-data analysis. Financial statements, annual reports and related websites would be analyzed further. A total of eight hospitals were analyzed.

FINDINGS The result shows that some hospitals rely on revenue from social activities (BPJS). The negative effect is that payment from BPJS took time, so it is the hospital's dominant account receivable. The hospital should manage the accounts overdue from BPJS well.

ORIGINALITY/VALUE This may be the first paper to study hospitals that are publicly listed companies focusing on profit while also engaging in social activities (social insurance).