One important thing that must be considered in determining government hospital rates is related to the people's mandate, namely traditional hospital services as government social services that must be subsidized so it is necessary to be careful in raising rates. The experience of the case of rate increases in government hospitals are felt to be too high for the public, there will immediately be a wave of protests. This condition causes changes in government hospital rates to be approved by Regional House of Representatives (DPR). As an industry with a high fixed cost structure, government hospitals have problems in investment and program development. This problem occurs when the power of government subsidies decreases. The government's hospital mission demands that the people's mandate in hospital services be fulfilled. However, the government's capacity is lacking. As a result, there are various economic issues related to government hospital rates. In principle, the existing rates, the cost-recovery, do not allow government hospitals to develop. The need for development is getting higher because the competition between hospitals is getting bigger. An interesting phenomenon is a hospital that is unable to develop itself, like someone who goes into the sand, the more trying will be the worse. If a hospital does not attract staff economically, the quality of service will deteriorate further. This has resulted in a decrease in the number of patients or to serve patients who have limited ability to pay and their demands.