Student Dissertation

Agency : Tariff Rates; Common Surgical Procedures; Private Hospitals; Hospital Tariff Rates

Background : The purpose of the study was to find the variation in the tariff rates for same surgical procedures across private hospitals of Delhi NCR and Mumbai and reasons for the same. 122 private hospitals across Mumbai and Delhi NCR, which included- NOIDA, Ghaziabad, Faridabad and Gurugram, were selected and data was collected from their tariff rates. The hospitals were categorized into 5 categories based on the bed strength and comparisons were made between the respective categories. The five categories were- 0-50 bedded (Category 1), 51-100 bedded (Category 2), 101-150 bedded (Category 3), 151-200 bedded (Category 5), >200 bedded (Category 5). The tariff rates for 5 common surgical procedures were selected calculated. The 5 common surgical procedures were- Caesarian section, Laparoscopic Appendectomy, Laparoscopic Cholecystectomy, Laparoscopic Inguinal Hernia and Normal Delivery. The study revealed that in all the five procedures across all the five category of hospitals the average of the tariff rates is higher in Mumbai Hospitals as compared to Delhi NCR. The study also highlighted that in case of Delhi NCR the hospitals of the same category had a huge price difference for the same procedure as compared to Mumbai. In Mumbai the price difference for a particular procedure across similar category of hospital was less. The reasons for the same were tried to explore. In order to do that expert’s opinions were taken. The opinions revealed the following reasons-Mumbai being a city with high cost of living, cost of infrastructure, overheads, manpower is also high. In order to get the return on investment, the hospitals charge high for treatment. Due to Regulatory Issues it is not easy to build a hospital in Mumbai. One has to go through many regulatory procedures which leads to less no. of hospitals in Mumbai also there are less fraudulent activities in Mumbai. This is one of the reason that the discrepancy in the hospital rates is less in Mumbai in comparison to Delhi.In Delhi the number of private hospitals is much higher. The density of hospitals is higher which leads to lower average of rates of a procedure. There is a wide variety of hospitals in Delhi which leads to higher discrepancy in the rates of a particular Procedure.