Muhammad AKOB, Munawar YANTAHIN, Gunawan Bata ILYAS, Yusriadi HALA, Aditya Halim Perdana Kusuma PUTRA / Journal of Asian Finance, Economics and Business Vol 8 No 1 (2021) 419–430 419 419 Print ISSN: 2288-4637 / Online ISSN 2288-4645 doi:10.13106/jafeb.2021.vol8.no1.419 Element of Marketing: SERVQUAL Toward Patient Loyalty in the Private Hospital Sector Muhammad AKOB 1 , Munawar YANTAHIN 2 , Gunawan Bata ILYAS 3 , Yusriadi HALA 4 , Aditya Halim Perdana Kusuma PUTRA 5 Received: September 30, 2020 Revised: November 22, 2020 Accepted: December 05, 2020 Abstract The study aims to analyze the factors that shape patient loyalty, namely, by involving the service quality factor (SERVQUAL), hospital image, patient value, and patient satisfaction in private hospitals. This study was conducted in Makassar City, Indonesia, with a sample of 296 eligible samples from private hospitals. The sample criteria were patients with outpatient and hospitalization status. Then, this study developed 23 hypotheses to test the statistical relationship between direct, intervening and multiple-effect models. Problem-solving and research focus are carried out using a quantitative method approach with a PLS-SEM-based testing tool. The bootstrapping method is being used with the constant bootstrapping step to demonstrate the results of hypothesis testing; we find that the overall hypothesis has a positive and significant effect. The combination of testing models involving several variables shows that a patient’s loyalty can be formed if a patient’s satisfaction has been realized. Satisfaction can be realized if the value-customer has been felt by the patients. Therefore, the hospital image must be directly proportional to service quality. Service quality is the essence of service that directly affects customers; service quality is also the reason that shapes consumer perceptions in increasing rationalization and solid customer (patient’s) decision-making. Keywords: SERVQUAL, Hospital Image, Patients Loyalty, Patients Value, Patients Satisfaction JEL Classification Code: M0, M30, M11, I1 hope that people can reach and enjoy quality, fair and equitable health services is an ideal that any country has been striving for, including Indonesia. Therefore, to realize these ideals, various health development efforts have been carried out, are being carried out, or are planned as strategic steps to learn meaningful changes in increased health status and health services to the community. Particularly in Indonesia, the government’s efforts to improve health status and improve services have become a focus. It is still a big job since forty-two years ago, because quality, fair, and equitable health services are still far from people’s expectations (Shieh, Wu, & Huang, 2010; Andriani, 2017). Therefore, it takes serious efforts to achieve lofty goals in the health sector. There are three fundamental factors why it is difficult to achieve fair and equitable quality health services in Indonesia: first, limited resources; second, government policies regarding health are still decentralized; and third, the high level of public awareness of the importance of quality health services is not directly proportional to the government’s ability to deal with bureaucratic problems and hospitals’ health services. (Handayani, Hidayanto, Sandhyaduhita, & Ayuningtyas, 2015; Perwitasari, Abror, & Wahyuningsih, 2010; Dewanto & Wardhani, 2018). 1 First Author and Corresponding Author. Postgraduate Management Program, STIEM Bongaya, Indonesia [Postal Address: Jl. Let. Jend. Mappaoddang No.28, Kota Makassar, Sulawesi Selatan 90131, Indonesia] Email: akob.kadir@gmail.com 2 Associate Professor, Department of Management, Universitas Bosowa, Makassar, Indonesia 3 Assistant Professor, Department of Management, STIE Amkop, Makassar, Indonesia 4 Assistant Professor, Department of Accounting, STIEM Bongaya, Makassar, Indonesia 5 Assistant Professor, Department of Management, Faculty of Economic & Business, Universitas Muslim Indonesia, Makassar, Indonesia © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. 1. Introduction In essence, the goal of health development in the world and Indonesia is to realize that the nation’s entire population is healthy and free from various diseases (Woo, 2017). Even though contracting disease in the future is a natural factor, the