Analysis Implementation of Activity-Based Budget for Planning and Control of Direct Labor Costs on the Inpatient Department (Case Study at XYZ Hospital)

Abstract

The research began with a request from the board of directors where researchers working at the hospital asked to prepare a budget based on activities. In addition, the competitive conditions in the hospital industry triggered by various factors require a complete change in the application of management principles in each hospital. Changes in organizational structure, for example, aim to allow flexibility, create a cross-functional team that focuses on patient satisfaction. Changes in human resource management have resulted in performance-based management replacing the function-based management that executives knew and used in the past. This activity-based management requires hospital managers to change the method they use for budgeting, from functional-based budgeting to activity-based budgeting.