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Background: BPJS developed a system of quality control and cost control in organizing universal health coverage. Quality control and cost control in hospitals is carried out by continuously improving quality and eliminating waste. Waste elimination can improve the control of production cost with the result that hospital profitability increases, without reducing service quality. Objective: This study aimed at examining the influencing of waste identification on the control of production cost. Methods: The study was performed in a class B teaching hospital with 410 beds. All of the pharmacy staff were included in the study. A questionnaire was used to collect data from 30 staff. Data analyzed using Partial Least Square (PLS). Results: Identification waste was found to have a negative significant impact on the control of production cost (Path coefficient=-0.683; T statistic= 16.034). Inappropriate processing and control of human resources cost were the predominant indicators (lf= 0.802 and 0,807). Conclusion: Identification waste adversely affect the control of production cost. The hospital should improve its pharmacy services by eliminating waste with the emphasis on inappropriate processing. To maintain the control of production cost, the hospital might consider to focus on the control of human resources cost.