Main Article Content
The economic behaviour of the hospital was discussed through two approaches, namely (1) the company standard model and (2) the non-profit hospital model. The company standard model refers to the behavior of institution in maximizing profits. The definition of profit or non-profit is not understandable in Indonesia. The limitation of the non-profit is that there is no party may receive or ask for the dividend (SHU). The dividend means the difference between income and cost or called as profit in a general business institution. In the United States, two other characteristics distinguish non-profit and for-profit status. The first, non-profit institutions do not need to pay corporate taxes and are often exempt from property taxes, land taxes, and sales taxes. The second, the donations to non-profit institutions will reduce taxes for donors. The definition of non-profit in the United States is still difficult to be implemented in Indonesia. The tax treatment is relatively similar between non-profit and for-profit hospitals. Thus, in the hospital sector in Indonesia, it can be stated that during the transition from social to socio-economic institutions, the overview of for-profit and non-profit forms is still vague.