Feasibility Study of Investment for the Development of Bhakti Dharma Husada Regional General Hospital in Surabaya City

Abstract

Since its establishment in 2010, Bhakti Dharma Husada Regional General Hospital has experienced a significant increase in patient demand for healthcare services. However, some existing services require additional space, and there is an increasing need for executive and VIP services to meet community expectations for higher-quality healthcare. To address these challenges, the hospital plans to develop its facilities by constructing a new building to expand and improve service delivery. This research evaluates the investment feasibility of the planned development using several key financial parameters: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PP), and Benefit-Cost Ratio (BCR). The results of the analysis show that the project is financially viable. The NPV is calculated at IDR 1,373,606,103,022, indicating positive returns over the investment period. The IRR of 17.39% exceeds the Minimum Attractive Rate of Return (MARR) of 9.21%, demonstrating strong financial performance. The BCR value of 1.28 further confirms the feasibility of the investment, as it is greater than 1. Additionally, the Payback Period is determined to be 6.89 years, which is shorter than the 10-year project lifecycle, ensuring a timely recovery of the initial investment. These findings highlight that the planned development of RSUD Bhakti Dharma Husada is both economically and operationally feasible. The expansion is expected to enhance healthcare delivery, increase patient capacity, and generate sustainable revenue for the hospital. This research provides valuable insights for hospital management and policymakers in planning future infrastructure projects.