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JOURNAL REVIEW ON MANAGERIAL ECONOMICS IN MANAGERIAL

DECISION MAKING

A Journal Review
Presented to the Faculty of Accountancy Program
Ramon Magsaysay Memorial Colleges
General Santos City

In Partial Fulfillment of the Requirements for the Degree

BACHELOR OF SCIENCE IN ACCOUNTANCY

By

DARLIANNE KLYNE C. BAYER

March 2024
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TABLE OF CONTENTS

Preliminary Pages Page

Title Page 1
Table of Contents 2

I BACKGROUND OF THE STUDY 3

II OBJECTIVES OF THE STUDY 4

III CONCEPTUAL MODEL 5

IV SUBJECT OF THE STUDY 5

V FINDINGS 6

VI CONCLUSION 6

VII RECOMMENDATIONS 7

REFERENCES 9
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I. BACKGROUND OF THE STUDY

Managerial Economics in Managerial Decision Making
was written by Muh, Fahrurrozi, Purnama Putra, Tiris
Sudrartono, Eka Hendrayani, and Lisawanto. It was published
on June 2021 in Turkish Online Journal of Qualitative Inquiry.
The article was written to emphasize the rapid change in
the hospital industry. From system based on humanitarian to
business institution with social goal. Hospital managers now
must have a knowledge in economics and study business
principles when making decisions. To address this managerial
problem, the study tends to examine how Indonesian Hospital
used managerial economics assess in their daily operations.
Management problems that require some decisions include tariff
and product set, making or buying decisions, finding the most
efficient production technique, inventory, recruitment, personnel
development, investment, and funding issues.

The study demonstrates the importance of managerial

economics in hospital management, especially
regarding authority over decision-making, profit considerations,
and striking a balance between social responsibility and
business objectives. It also raises concerns about how hospital
socioeconomic dynamics are changing and whether or not profit
motives should be included to spur development and reward
performance.
In summary, the study offers valuable perspectives on
the challenges and prospects encountered by hospital
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administrators in Indonesia while negotiating the convergence of

financial directives, community obligations, and changing
healthcare environments.

II. OBJECTIVES OF THE STUDY

This study aims to address the importance of using
economic principles in Indonesian hospital industry in their
decision-making processes. In considering changing healthcare
systems and the need to balance between business entity and
humanitarian, the study intends to illustrate on how managerial
economics might improve the efficacy and efficiency of decision-
making in hospitals.
This journal review examines the work of Fahrurrozi,
Putra, Sudrartono, Hendrayani, and Lisawanto in order to: a)
assess whether the changing to socio-economic entity can
affect the profit; b)elaborate the business opportunities and
challenges faces by Indonesian Hospital; and c)and examines
how understanding managerial economics helps the daily
operation of the hospital industry.

III. CONCEPTUAL MODEL

The conceptual model used in the article appears to cope
with the difficulties of managerial decision-making in the hospital
sector, the article appears to focus on the use of economic
theories, decision-making, and managerial economics
instruments, with an emphasis on the allocation of resources
and efficiency in operation.
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IV. SUBJECT OF THE STUDY

The article focuses on how managerial economics is
used in hospital sector management decision-making. It focuses
on how hospital administrators can apply economic theories and
techniques to make well-informed decisions in a changing
hospital environment that optimize resources, address
challenges, and accomplish the company's objectives.
In regards to the study, hospital administrators need to
have a strong grasp of management economics to handle the
difficulties of running a hospital with a social mission while also
considering economic principles. The topic also discusses how
hospital administrators can successfully address management
challenges by utilizing business principles and economic
analytical techniques.
V. FINDINGS
The study reveals the difficulties hospital managers have
in integrating corporate objectives with charitable endeavors. It
draws attention to the necessity of a well-rounded strategy that
takes social effect and economic feasibility into account.
Hospital administrators can make better decisions with limited
resources by utilizing economic principles and methods, such as
managerial economics. The article emphasizes how crucial it is
to incorporate economic concepts into healthcare management
procedures in order to promote efficiency and long-term growth.
The study also emphasizes how critical it is to
comprehend management economics in the hospital setting.
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The authors claim that hospital administrators can make well-

informed decisions that take into consideration economic
limitations and principles by having a solid understanding of
managerial economics. Examples of how managerial economics
can be used to address hospital management issues include
budgetary control, buying expensive medical equipment, and
determining rates for VIP wards.

VI. CONCLUSION
In conclusion, the article emphasizes the significance of
management economics in shaping healthcare industry
decision-making. It highlights how hospital management's
foundation for decision-making must include economic
concepts, practices, and frameworks to support efficacy,
sustainability, and strategic growth. The results of the study
guide healthcare management strategies, emphasizing how
important it is to consider economic perspectives while dealing
with the complexities of modern healthcare systems.
It also provides examples of how managerial economics
can be used to address hospital management issues including
budgetary control, buying pricey medical equipment, and
determining rates for VIP wards. The authors believe that the
Public Health Service (Puskesmas), the Health Office, and
hospitals all benefit from an awareness of management
economics. To comprehend these ideas more fully, they advise
reading several kinds of managerial economics and economics
textbooks.
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Overall, the study suggests hospital administrators use

economic concepts and principles in their decision-making
processes by emphasizing the importance of economics and
managerial economics in the healthcare industry.

VII. RECOMMENDATION
Some of recommendations can be made in the article:
1. Encourage hospital managers to consider the long-term
financial sustainability of the hospital by incorporating economic
principles into strategic planning and resource allocation.

2. Encourage hospital administrators to take the institution's

long-term financial viability into account by integrating economic
concepts into resource allocation and strategic planning.

3. Encourage hospital managers to take advantage of chances

for professional development and constant learning to stay
updated on the most modern developments in management
economics and economic theory.

By implementing these recommendations, hospital

managers can improve their capacity to allocate resources
effectively, make wise economic decisions, and support the
long-term sustainability of the hospital industry.
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