Sustainability in health service industry: The implementation of Material Flow Cost Accounting (MFCA) as an eco-efficient analysis

Abstract

This research intends to analyze the level of efficiency at hospitals to increase the efficiency of productivity and industrial competitiveness, and to support the government's commitment regarding the Sustainability Development Goals program. This research performed a productivity analysis using Material Flow Cost Accounting (MFCA) which is divided into several stages, namely the planning stage (Plan), the second stage of implementation (Do), the third stage of evaluation (Check), and the last is the follow-up stage (Act). The analysis focuses on financial and operational reporting data for three months, and showed that the current efficiency level of Hospital X was 68.54%, indicating a high level of efficiency of the hospital. However, with the conventional method, the hospital was yet unable to identify the level of inefficiency related to the environment or pollution caused by the hospital's operational activities. The implementation of MFCA resulted in the fact that the hospital's operational activities for three months have consequences in 9% of the negative products from the total material input or at amount of Rp. 12,516,456, which was previously unobserved by conventional methods. The results of the material flow tracing using MFCA have key benefits, such as minimizing waste, thereby saving the environment from damage, and thus realizing the sustainable operation of hospital X. This means that if MFCA is applied continuously in Hospital X, it will not only save expenses but can also achieve eco-efficiency and realize continuous improvements so that, in the long-term, operational sustainability can be achieved.