THE INTERVENING ROLE OF THE BALANCED SCORECARD IN THE RELATIONSHIP BETWEEN QUALITY & COST CONTROL, VALUE ADDED AND PERFORMANCE OF PUBLIC HOSPITAL IN EAST JAVA
The implementation of the Financial Management Pattern and National Security Network in East Java's public hospitals is complicated by inconsistent service standards, cost control, and performance achievement. These challenges underscore the need for further research into the impact of value-added variables and the Balanced Scorecard on hospital performance and service quality improvement. This study aims to investigate the direct and indirect impact of quality control, cost control, and value-added on the performance of Provincial Public Hospitals in East Java Province through the Balanced Scorecard as an intervening variable. The study uses explanatory research to examine causal relationships between variables via hypothesis testing. The survey involved 144 directors, and QC and finance staff from 48 public hospitals in East Java. Data was analyzed using the SEM technique with Smart PLS V.4.0, focusing on the Balanced Scorecard as a performance indicator. The findings show that quality control and cost control significantly impact the performance of East Java public hospitals, while value-added does not. Additionally, it was found that quality control and value-added have a significant impact on performance through the Balanced Scorecard, while cost control does not. Lastly, the Balanced Scorecard itself significantly influences the performance of regional general hospitals in East Java Province.
Quality Control, Cost Control, Value Added, Performance, Balanced Scorecard, Hospital.