Optimizing financial management to improve hospital profitability: A case study of Ari Canti Hospital, Ubud
Keywords:
Financial Management, Hospital Profit Margin, Revenue Cycle Management, Financial Sustainability, Strategic Management, Qualitative Case StudyAbstract
Financial sustainability has become a critical challenge for hospitals, requiring effective financial management to maintain profitability while ensuring the delivery of high-quality healthcare services. This study aims to examine the dynamics of hospital profit margins, identify the internal and external factors influencing financial performance, and formulate strategic priorities to improve profitability. A qualitative case study approach was employed at Ari Canti Hospital, Ubud. Data were collected through in-depth interviews, direct observations, and analyses of financial and operational documents. The findings were subsequently interpreted using qualitative data analysis integrated with SWOT, TOWS, and the Quantitative Strategic Planning Matrix (QSPM) to develop strategic recommendations. The results reveal that fluctuations in profit margins are primarily associated with high levels of pending claims, returned claims, prolonged Days Accounts Receivable (Days AR), suboptimal cash flow management, and increasing operational costs. Conversely, the hospital possesses several strategic strengths, including strong managerial commitment, integrated information systems, competent human resources, and stable revenue growth, while expanding healthcare demand and technological advancement present significant external opportunities. The strategic priority identified through the QSPM analysis is the implementation of an integrated Revenue Cycle Management (RCM) framework focusing on claim process optimization, accelerated accounts receivable collection, operational cost control, and strengthened financial monitoring systems. These initiatives are expected to enhance profit margins and reinforce the long-term financial sustainability of Ari Canti Hospital. The findings contribute to the growing literature on hospital financial management by demonstrating how integrated revenue cycle optimization can strengthen financial performance in private healthcare institutions.
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