lilavati business model
So I just had a minor arhthroscopic knee procedure at Lilavati, one of the better hospitals in the city – but I need some help from the community to understand their business model. This is how it works:
First, depending on the type of surgery, it will fall into a specific price tier – tier 1 being of the most simple procedures, and tier 5 being your kidney transplants, spinal surgeries, etc. Once it is determined what surgery tier your procedure falls in, the prices for everything involved in your procedure will change (drastically!) depending on what room type you choose.
Example: I did not want to share space with other patients, so the lowest category single room was categorized as “Special.” My tier 2 knee procedure in a “Special” room would cost me Rs. 40,000. I was upgraded to a “Super Deluxe” room (one below the HIGHEST category single room, termed “Executive Suite”) for the price of a Special room because of availability issues. Great, I was getting a good deal here. When all was said and done, of course the billing department fucked up the total and charged me as per Super Deluxe. What was the final tally for the EXACT same procedure for this room? Rs. 87,000! The procedure did not change, I was given the same care, the same drugs, the same food, the same basic services, but because I was in a higher tier room, the price for everything had stepped up. I looked carefully at the line-item breakdown of the invoice. What would have made sense was if the entire delta between the Special room and the Super Deluxe room was allocated to the room costs, but that wasn’t so. The surgeons fees went up, the anasthesia fees went up, the drug costs went up, food costs went up – it just didn’t make much sense to me. Basically, Lilavati “penalizes” people for being rich.
Is this right? Maybe it is, but can someone help me get my arms around this one?