To know more on the pricing for healthcare services, one can contact Macula Healthcare (drjithendrakumar@hotmail.com). We will come back to you with specific details and also educate on our other services. Visit us at www.maculahealthcare.com for more details.

1. Pricing in Small Hospital - How do they do? Is it right?
Keywords
 Pricing in small hospital
 Competitors profiling
 Market survey for hospitals
 Hospital Consultants
 Competitive price
The most common trends amongst the small hospitals in India on pricing the healthcare
services is by comparing it to other hospitals of the similar nature. It is the crude way to price
the service and sometimes it clicks but most of the time it will be costing the hospital not
realizing the margins.
When you start a new hospital, you can price it by comparing with the other hospitals of the
same size and speciality. But one has to re-look into the productivity, margins and then control
the cost. For any given services, the major cost heads are resource cost, consumable cost and
infrastructure cost. So, these are to be considered while one fix a price for the services offered.
Usually, a margin of 25% to 30% is considered while pricing but may be more based on the
quality of services, hospitality & as per the expectations of the community. One has to study
these before they fix a price, and it should be acceptable by the payers. There are scientific ways
to set a price with good margin and with flexibility to compete with others in the price war.
Hospitals who do not work on cost accounting, over a period of time it will be difficult for them
to sustain in the competitive price war. In the long run it affects the profitability of the
organization and also if not noticed, it may lead to losses.
Controlling cost and optimizing the services are huge activity and is a science. If one can
achieve this, then the hospital can attain good PBIT Margins and ROCE (Return of Capital
Employed). Some hospitals, understanding the total cost of operations, strategize on offering
services in retainers model to recover the initial cost and then play around with the competitors
through pricing. In the process, they try to convert the fixed cost to variable cost so that it
should not affect the baseline cost and hence opportunity for sustained growth.
We as hospital consultants at Macula Healthcare, advise hospital promoters on ways to
optimize and effectively control the cost. We also help them in pricing based on the geographic
need, market survey for hospitals and competitors profiling.
To know more on the pricing for healthcare services, one can contact Macula Healthcare
(drjithendrakumar@hotmail.com). We will come back to you with specific details and also
educate on our other services. Visit us at www.maculahealthcare.com for more details.