The Influence of Service Quality and Price on General Inpatient Loyalty Mediated by Patient Satisfaction at Setio Husodo Hospital Kisaran

Ardianta Rabu, September 02, 2026
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FORMOSA NEWS

Service Quality and Fair Pricing Drive Inpatient Loyalty in Private Healthcare

A new study by researchers at Universitas Sumatera Utara reveals that service quality and competitive pricing are the primary drivers of patient satisfaction and long-term loyalty among general inpatients at Setio Husodo Hospital Kisaran. Authored by Eunike Al Grea Perangin Angin, Fadli, and Beby Karina Fawzeea Sembiring, the research was published in the Indonesian Journal of Economic & Management Sciences (IJEMS) in 2026. The findings arrive at a critical juncture for private healthcare institutions, where post-pandemic health awareness has made patients far more selective about their healthcare choices. At Setio Husodo Hospital Kisaran, general inpatient visits dropped from 1,030 in 2023 to 870 in 2024, highlighting an urgent need for private hospitals to retain patients through better service delivery and value-oriented pricing.

Maintaining patient loyalty is vital for healthcare institutions because loyal patients provide revenue stability and positive word-of-mouth recommendations. However, Setio Husodo Hospital Kisaran faced operational challenges, including negative online reviews and patient complaints regarding service delays, staff responsiveness, and expensive inpatient fees. In response, the research team set out to investigate how service delivery and pricing strategies directly and indirectly influence patient loyalty through the mediating mechanism of patient satisfaction.

The empirical investigation was conducted between September 2025 and June 2026 at Setio Husodo Hospital Kisaran in Asahan Regency, North Sumatra, Indonesia. Out of a total population of 870 general inpatients, the researchers selected a sample of 190 respondents using a purposive sampling method. Data were gathered through structured questionnaires using a 5-point Likert scale to measure key dimensions such as staff empathy, tangible facilities, price affordability, and referral intentions. To process the data, the authors utilized Partial Least Squares Structural Equation Modeling (PLS-SEM) executed through SmartPLS 4 software, ensuring statistical rigor across validity, reliability, and structural model testing.

The main findings of the study demonstrate clear direct and indirect relationships between hospital management practices and patient behavior:

  • Service Quality Enhances Satisfaction: Service quality exerts a strong positive influence on patient satisfaction ($\beta = 0.351$, $p < 0.001$). Inpatients who experience prompt care, professional interactions, and clean physical facilities report significantly higher satisfaction levels.
  • Fair Pricing Boosts Satisfaction: Perceptions of price fairness and affordability significantly boost patient satisfaction ($\beta = 0.389$, $p < 0.001$). Patients express greater satisfaction when healthcare costs match the quality of services received.
  • Direct Drivers of Patient Loyalty: Both service quality ($\beta = 0.349$, $p < 0.001$) and fair pricing ($\beta = 0.339$, $p < 0.001$) directly encourage patients to return to the facility and recommend it to others.
  • Mediating Role of Patient Satisfaction: Patient satisfaction directly increases patient loyalty ($\beta = 0.246$, $p = 0.005$). Furthermore, satisfaction acts as a critical mediator connecting service quality ($\beta = 0.086$, $p = 0.022$) and price ($\beta = 0.096$, $p = 0.016$) to overall patient loyalty.
  • Explanatory Power of the Model: The structural model explains 38.6% of the variance in patient satisfaction ($R^2 = 0.386$) and 57.0% of the variance in patient loyalty ($R^2 = 0.570$).

These findings offer practical insights for hospital management, healthcare marketers, and public policy leaders. Hospitals cannot rely solely on branding or marketing; they must prioritize operational improvements in nursing care, administrative response times, and facility management. Furthermore, hospital administrators must establish transparent and competitive pricing structures. When patients feel that their financial sacrifices yield proportional health benefits and compassionate care, their satisfaction translates into long-term commitment.

Highlighting the practical implications of the research, Eunike Al Grea Perangin Angin and the team from Universitas Sumatera Utara noted that improving healthcare service quality while maintaining fair pricing policies creates a sustainable framework for patient retention in regional private hospitals.

Author Profiles

  1. Eunike Al Grea Perangin Angin, S.M. — Master's candidate in Management at the Faculty of Economics and Business, Universitas Sumatera Utara. Her research specializes in services marketing and consumer behavior in healthcare institutions.
  2. Dr. Fadli, S.E., M.Si. — Senior Lecturer and Researcher at the Faculty of Economics and Business, Universitas Sumatera Utara, specializing in strategic management and organizational behavior.
  3. Prof. Dr. Beby Karina Fawzeea Sembiring, S.E., M.Si. — Professor at the Faculty of Economics and Business, Universitas Sumatera Utara, specializing in services marketing, customer relationship management, and quantitative research methodologies.

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