Student Dissertation

Agency : Price Proposition; Benchmarking; Billing Systems; Healthcare Packages

Objective : The objectives of this study are; 1. To develop the steps for telescopic pricing. 2. To compare the hospital prices with the prices of competitors. 3. To evaluate the impact of price change on revenue.

Background : The primary use of competitive benchmarking is in differentiating value. Essentially, the more the organization can learn about their competitors' products, the more they learn about how they can make their own products different. Customers look for value in a product that no one else can offer. The major problems that organization was facing and decided to go for benchmarking was; Units were facing challenges due to gaps between initial estimates and final bills. There was no standardized billing system for all the units and hence organization face problem while evaluating the billing system or while imposing the price change for each unit. Through this research organization will be able to set a standardized billing system across all units and estimating that all problems related to billing will be solved or will be easy to solve.

Methodology : The research design of the study was semi- experimental under which field experiment study was conducted. A tool was developed through custom made technique and was validated through logical algorithm. Data related to prices from other hospitals was collected and benchmarking was done on that basis. An Excel based tool was developed for all the tariffs, health packages and surgical packages which were used by hospital. Location of study was a hospital organization; sample size was 200 line items under the main 9 groups. The sampling method used was stratified sampling. As the line items were first divided into the category it comes from, then the department it belongs to and then randomly line items were chosen for benchmarking.

Findings : The findings that came were, hospital stood somewhere in-between its competitors when it comes to price and value. Hence on the basis of this research hospital can increase its price on some line items, like semi-special and special bed category but cannot increase in ICU as it is already very much higher than its competitors.

Recommendations : The use and role of this tool is; once it is prepared the major work is done on the first sheet of benchmarking. Rest everything else is then calculated by formulas that is being put up in the entire sheet. And it can directly give telescopic price and the level where hospital stands as compared to the competitors. Also competitive benchmarking isn’t just about comparing benchmarking numbers, it goes beyond numbers and looks at processes, resources and systems.


x