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Hospital revenue: a private hospital in Pune

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

A fictional 300-bed private hospital in Pune has average occupancy of 70 percent. Its average revenue per occupied bed per day (ARPOB, a metric Indian hospital chains report) is INR 60,000. What is its yearly inpatient revenue, in INR crore? If it raises occupancy to 80 percent with the same ARPOB, how much revenue does it add?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Inpatient revenue = beds x occupancy x 365 x ARPOB
- Occupied bed days
- Revenue today
- Revenue at 80 percent occupancy

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: Occupied bed days
What a strong candidate does: 300 beds, 70 percent full, 365 days.
Occupied bed days per year: 300 × 0.7 × 365 = 76,650
Step 2: Revenue today
What a strong candidate does: Times INR 60,000, divided by 10 million to get crore.
Inpatient revenue today (INR crore): 300 × 0.7 × 365 × 60,000 ÷ 10,000,000 = 460
Step 3: Revenue at 80 percent
What a strong candidate does: Same calculation at 80 percent occupancy.
Inpatient revenue at 80 percent (INR crore): 300 × 0.8 × 365 × 60,000 ÷ 10,000,000 = 526
Step 4: Revenue added
What a strong candidate does: The difference.
Revenue added (INR crore): 525.6 - 459.9 = 65.7

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

The hospital should push occupancy from 70 to 80 percent, because that adds about INR 66 crore of revenue a year, from INR 460 crore to INR 526 crore, at the same ARPOB of INR 60,000. First, staff and building costs are mostly fixed, so much of the extra revenue becomes profit. Second, the levers are clear: more referrals, shorter waits for admission and a better payer mix. The risk is that filling beds with lower-paying patients lowers ARPOB. As a next step, track occupancy and ARPOB by department every month.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.