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Shita Dewi Center for Health Service Management FK UGM Not For Profit private sector hospitals in Indonesia

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Shita Dewi

Center for Health Service Management FK UGM

Not For Profit private sector hospitals

in Indonesia

Outline

[email protected] 2

The history

The situation

The challenges

Key points

The history

[email protected] 3

NFP hospital: Part of Church mission

Post-independence

Some NFPs are nationalized

Government’ subsidy

Owner’ subsidy

1970s

Moslem hospitals

1990s

Private investment

The Situation

[email protected] 4

The number of hospital: State and Non State

(1998 – 2008)

[email protected] 5

589 591 593 595 598 609 617 625 642 655 667

491 511 518

550 580

606 617 621 626 638 653

0

100

200

300

400

500

600

700

800

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Ju

mla

h R

um

ah S

akit

Pemerintah Swasta

The number of hospital beds: State and

Non State (1998 – 2008)

[email protected] 6

79930 80069 80286 80670 81095 81243 81581 82456 85391

88856 89596

41389 42557 43312 44837 47245 48946 49512 49775 51375 51475 53288

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Ju

mla

h T

em

pa

t T

idu

r

Pemerintah Swasta

Non State Hospital growth

(based on ownership)

[email protected] 7

34 39 39 40 42 49 52 55 60 71 85

434 449 456

487 513

530 538 538 538 539 539

23 23 23 23 25 27 27 28 28 28 29 0

100

200

300

400

500

600

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Ju

mla

h R

um

ah

Sa

kit

Perusahaan Yayasan Perkumpulan

Growth of Not-for-Profit Hospital (based

on hospital beds capacity)

[email protected] 8

Pertumbuhan Jumlah RS Swasta milik Yayasan menurut

kelompok TT

0

50

100

150

200

250

300

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

0 - 50 51 - 150 > 150

0

100

200

300

400

500

600

700

800

Government

Not For Profit

For Profit

688

484

319

97

208

143

Hospital in Indonesia (2011)

General Specialist

[email protected] 9

The challenges

[email protected] 10

Who do they serve?

High tech Medium tech

Low tech

High end market

1 2 3

Middle class market

4 5 6

Low end market

7 8 9

[email protected] 11

Who pays?

Payment Hospital A (2000) Hospital B (2010)

OOP 71% 42%

Paid (or partly paid) by

employer

14% 40%

SHI 6% 7%

Other insurance 9% 10%

[email protected] 12

….suggesting that non financial barriers to use health services persist [email protected] 13

No insurance

Jamkesmas/Askeskin/Health Card

Other insurance

0

.005

.01

.015

.02

.025

.03

.035

.04

Util

izatio

n r

ate

2003 2004 2005 2006 2007 2008 2009 2010Year

All

No insurance

Jamkesmas/Askeskin/Health Card

Other insurance

0

.005

.01

.015

.02

.025

.03

.035

.04

Util

izatio

n r

ate

2003 2004 2005 2006 2007 2008 2009 2010Year

Bottom 3 deciles

Source: SUSENAS 2004-2009

Inpatient utilization rate, 2004-2009by insurance type

[email protected] 14

Public-Private mix

What do these hospitals have in

common?

[email protected] 15

What role can NFP plays?

[email protected] 16

[email protected] 17

Two mothers who were left no option but

to sell their newborns to pay hospital bills

could have avoided their plight had they

been informed they qualified for insurance

and financing, health officials said on

Thursday.

Suparti, 41, a poor woman from Gunung

Kidul district near Yogyakarta, said she

was forced to sell one of the twin girls to

whom she had given birth to pay medical

expenses for the deliveries at a state-

owned hospital.

Her husband, Sarimin, 50, who makes a

living doing odd jobs, failed to get a loan to

pay the Rp 6 million ($660) bill. She said a

hospital staff member offered to pay the

bill if she allowed one of the twins to be

adopted by another hospital employee.

“I had to sell one of my twin girls, whom I

gave birth to only 10 days ago, because I

couldn’t pay the bill at Wonosari General

Hospital,” Suparti told state news agency

Antara on Wednesday. “On Tuesday, I

was allowed to go home. One of my

babies was taken by Mbak Rina [the staff

member]. I was not allowed to see [my

child].”

Munawaroh, a poor woman who gave birth

in Bali to a daughter with lung problems,

was also faced with a Rp 6 million bill. Her

husband, a laborer at a furniture store, had

disappeared and her hospital bill grew by

Rp 1.5 million per day.

“I am willing to give up my baby if

someone wants to buy it, as long as I can

get out of the hospital,” she told the

Jakarta Globe.

Usman Sumantri, the head of the Health

Ministry’s financing and insurance unit, told

the Globe that parents who were not

covered by Jamkesmas, the national health

insurance scheme for the poor, should have

been covered by Jamkesda, the local

insurance plan.

“There should have been another health

care scheme to help the parents,” Usman

said. “Selling the babies is not the way to

solve the problem.”

Bondan Agus Suryanto, head of the

Yogyakarta Health Office, said patients had

options available to help pay hospital bills.

“We are also going to warn the hospital that

when there are patients who do not have

insurance, it should give them information

on other options.”

A hospital employee declined comment,

saying the press officer had left for the day.

Syahrul Aminullah, chairman of the

Indonesian Public Health Association

(Iakmi), said hospitals could be sued if they

did not provide care to the poor.

Local governments are also responsible for

providing health insurance to poor residents,

Syahrul said.

Additional reporting from Made Arya

Kencana and Antara

It is distressing that after nearly 65 years of

independence, we are still finding cases

where women who live in abject poverty

have no other option but to sell their

newborn babies to pay their hospital bills.

First there was the case of Suparti, a

woman from a poor district in Yogyakarta,

who had to give away one of her twin baby

girls to a member of staff at the state-run

hospital where she had just given birth in

order to pay the Rp 6 million ($660) bill for

her Caesarean section.

Then there was Munawaroh, a

washerwomen in Bali, who said she would

have to sell her prematurely born daughter

to cover her maternity costs.

These cases highlight the fact that our

hard-won independence has failed to

improve the lives of many Indonesians.

In Suparti’s case, the story is even more

distressing because she gave birth in a

state-owned hospital in Wonosari, a

medical facility operated by the very

government that is supposed to protect its

citizens — especially children, the elderly

and the poor.

And these two poor women are only the

latest to come to the public’s attention.

Long is the list of reports of infants being

sold to cover medical costs, and there

have been just as many cases of poor

patients being virtually held hostage by

their hospitals for failure to pay their bills.

True, the government does have a

dedicated health insurance scheme for

the poor — Jamkesmas at the national

level and Jamkesda in the regions — but

these schemes have been hindered by red

tape and bureaucracy.

The government, as some officials point

out, has also failed miserably at effectively

disseminating information about health

insurance options and how citizens can go

about accessing them.

These cases point to an urgent need for

the authorities, including the central

government and local administrations, to

improve their health services and health

insurance coverage for the needy.

The government should be more proactive

in both promoting its health insurance

schemes for the poor and in assuring that

these schemes reach those who truly need

them.

The authorities should also be stricter in

admonishing health care institutions,

especially those owned and operated by

the state, that refuse to treat poor people

or try to exact payments that they clearly

cannot afford.

Our Constitution clearly states that the

state should protect its citizens and work

for their well-being. How can we claim to

be a modern, civilized society as long as

incidents such as these continue to occur?

In the cases of Suparti and Munawaroh,

we hope that it is clear to the authorities

what their first course of action must be.

The children must be returned to their

mothers. Immediately.

Health Care Is Failing Our Most Vulnerable In the Dark About Insurance, Mothers Give Up Newborns to Pay Hospital Bills Nurfika Osman | July 09, 2010

Govt to make 45,000 hospital beds free for poor people

[email protected] 18

The government plans to offer free

medical services for patients using

third-class facilities at public hospitals

this year, a move aimed at helping the

large percentage of low-income and

poor people who are uninsured.

Health Minister Endang Rahayu

Sedyaningsih said many patients from

low-income families were facing

financial difficulties in gaining access

to adequate health services, and that

those who were covered by health

insurance were hampered by complex

bureaucracy.

The government will expand third-

class health facilities at 93 public

hospitals, she said.

“We have agreed to universal

coverage. We have been troubled by

various administrative procedures. So,

it will be no problem for us to give free

medical treatment for patients using

third-class facilities,” Endang said. “It

would be easier for us because we

don’t have to ask them to provide any

documents anymore.”

The public health insurance program

(Jamkesmas), funded by the state

budget, and Jamkesda, arranged by

regional administrations, both of which

were established in 2008, have not

brought medical coverage to all low-

income families.

“In many cases, patients from low-

income families are not members of

the Jamkesmas or Jamkesda

programs,” Endang said.

Titik Purwasih, a 29-year-old housewife

and a member of the low-income bracket,

did not have access to public health

subsidy when she was pregnant.

Titik suffered a severe premature rupture

of the foetal membrane, which made

childbirth risky for her, necessitating a

Caesarean section.

Titik’s mother-in-law, Mariani, said her

family did not have the means to pay for

Titik’s operation, but the situation left

them with no choice.

“We had neither the money nor health

insurance,” she told The Jakarta Post on

Thursday. “They asked me to think about

her baby and her own life first instead of

the medical expenses,” Mariani said.

“About 60 to 70 percent of the total

64,441 third-class facility beds both in

public and private hospitals have been

allocated for Jamkesmas and Jamkesda

holders,” Endang said, adding that this

showed that the country still lacked

third-class beds.

Private hospitals should expand the

number of their third-class facilities due

to the high number of poor people, she

added.

“They can arrange a kind of hospital

social responsibility scheme, so those

who come from poor families can afford

medical treatment even at private

hospitals,” Endang said.

Citing the latest data from the Central

Statistics Agency (BPS), she said that

76.4 million out of 237.6 million

Indonesian people belonged to the poor

and low-income brackets.

The government has allocated Rp 5.13

trillion (US$564.3 million) for

Jamkesmas this year from a total health

budget of Rp 27.66 trillion, which is an

increase from Rp 24.86 trillion in 2010

and Rp 20.17 trillion in 2009.

Rieke Dyah Pitaloka, a member of

House of Representatives Commission

IX, said the government should provide

a clear definition of “poor people” who

would be eligible for the subsidy.

Citing BPS data, she said that 28

percent of Indonesian people got sick

every year, and that 3 percent suffered

from serious illnesses.

“A clearer definition of poor people

would guarantee that any insurance

program can be better distributed to the

targeted people,” she said. (ebf)

In the end Mariani and her family were

able to raise the money for Titik’s

operation, and Titik delivered the baby

safely. Titik is now recovering in the third-

class wing of a hospital.

To ease the financial burden, Mariani and

her family registered for government

subsidy for the operation.

But the process was long and arduous,

involving a stack of documents and

several trips to several government

offices.

According to the Health Ministry,

Indonesia has 1,523 hospitals — private

and public — with a total of 151,000 beds.

About 45,000 of the 64,441 third-class

facility beds belong to public hospitals.

The Jakarta Post, Jakarta | Fri, 01/21/2011

Hospital beds need (by Province)

[email protected] 19

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

Beds need

Total beds available

Key points

[email protected] 20

NFP sustainability at risk

Serving low-end market

Jamkesmas reimbursement at below-cost

No tax exemption or any other concession (treated the same as for-profit hospitals)

Decreasing support from owner and no systematic fundraising effort

MoH has started to pay attention to the NFP hospitals

Hospital Act (2009) : rights to tax incentive (MoF ???)

Ministerial Decree (2010) : rights to receive government support (facility & equipment)

NFP hospitals have to put more effort into good governance,

accountability and transparency measures.