The Analyst's Path

Glossarytaught in M5.07

Average revenue per occupied bed

Also called ARPOB, average revenue per occupied bed.

Daily revenue divided by occupied beds. The pricing measure for a hospital.

A chain with ₹1,400 crore of revenue, 1,800 beds and 68% occupancy earns about ₹31,337 per occupied bed per day.

Revenue per occupied bed rises with prices, with a richer case mix and with shorter stays, and case mix is the part a list-price change doesn't show. A hospital doing more cardiac and oncology work and fewer general medicine cases will show a higher figure without charging any individual patient more.

Occupancy and this measure are the two levers, and a hospital chain's whole operating story is which of the two moved.

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