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.
Advertisement