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ARPOB (average revenue per occupied bed)

Business Model & Unit Economics · Unit metrics

What it is

Average Revenue Per Occupied Bed per day - the core productivity metric for a hospital. It must be read alongside occupancy and average length of stay, since a shorter stay lifts ARPOB without adding revenue

It proxies case mix and payer mix rather than pricing: tertiary and quaternary work, oncology, transplants and robotics lift it, while scheme and low-acuity volumes pull it down

Impact on industries

  • Dispersion shows strategy drives it, not scale - Max at ~Rs 77,000/day against Apollo ~Rs 59,000 and Narayana ~Rs 42,000, on a third of Apollo's beds
  • Rising ARPOB alongside volume growth is the healthiest signal available; FY26 saw most chains post mid-to-high single-digit gains at 67-76% occupancy
  • Mix-driven and therefore manipulable - it can rise purely on shorter stays or a richer payer mix with no underlying efficiency gain
  • Structurally diluted by PM-JAY and TPA volumes, and by new-bed ramp-up, since immature hospitals start at low acuity and occupancy

Industries affected