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New law threatens hospitals: Doctors
While low-income citizens have welcomed the recently passed Hospital Law, state-run hospitals in Lampung province are concerned they will lose significant sources of revenue and may have to shut down
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hile low-income citizens have welcomed the recently passed Hospital Law, state-run hospitals in Lampung province are concerned they will lose significant sources of revenue and may have to shut down.
Local hospital heads are warning the new law could shut down or bankrupt a number of hospitals in the province, since it only recognizes third class medical treatment.
Should the hospital law be enforced, they said, state-run hospitals in the region could lose significant income.
A number of hospitals in Lampung have managed to stay afloat thanks to the revenue earned from charging higher rates for VIP, first- and second-class rooms, which is no longer permissible under the new law, they argued.
Under the new Hospital Law passed by the House of Representatives on Monday, private hospitals are also required to allocate 25 percent of their wards to third class patients.
The move was aimed at eliminating discrimination when providing medical treatment in hospitals.
Residents in Lampung welcomed the new law and expected it would ensure better services at state-run hospitals.
However, Wirman, head of the Bandarlampung's Abdul Moeloek General Hospital (RSUAM), said that if enforced, the new law could make his hospital lose some Rp 12 billion of annual revenue gained from VIP patients.
The hospital makes an additional Rp 22 billion per year from providing first- and second-class rooms for patients, he added.
Wirman said 80 of the 600 beds at the RSUAM were reserved for VIP patients, 20 for first-class patients and 20 for second-class ones.
"We don't make any money from treating third-class patients because we are providing a social service," he added.
Wirman said his hospital made on average Rp 40 billion worth of revenue per year, of which Rp 10 billion was spent on operational costs.
The Rp 40 billion revenue came mostly from charging higher rates for VIPs, first- and second-class patients, he added.
Lukman, director of Ahmad Yani General Hospital in Metro city, Lampung, also voiced a similar concern.
He said the enforcement of the new Hospital Law risked closing down his state-run hospital.
"So far, our income relies on VIP patients paying higher rates for hospital services," Lukman said.
"The income is only sufficient to support our operational costs. We make no profit," he added.
"Should the VIP treatment be scrapped at state-run hospitals, the Ahmad Yani Hospital may have to shut down."
Lukman added that the hospital's annual income totalled between Rp 10 and 12 billion.
Some 50 percent of the revenue, he added, was spent on operational costs and 40 percent on buying hospital equipment.
"Every year, we receive Rp 2 billion from the Metro city administration to subsidize our operational costs," Lukman said.
"If VIP, first- and second- class services are scrapped, Metro city administration will give more subsidies to the hospital. I am not sure they have more funds for that."
State-owned Ahmad Yani Hospital has 215 beds, including 50 allocated to VIP patients.
"The VIP ward has so far provided additional funding to cover the hospital's operational costs," Lukman said.
