The Analyst's Path

Glossary

Average revenue per occupied bed

M5.07

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.

The measure rises with case mix rather than with list prices. 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.