I’m new to this sector, forgive me if i am wrong.
they want to focus on improving the throughput of patients. Does not get captured accurately in ARPOB.
Yes, this is what they said in concall, but i dont agree with it. In my opinion ARPOB should be very good indicator. Let me try to explain.
Let us take the overral revenue into consideration. This way we take this out of the equation.
There is a huge out patient also which doesn’t get captured in ARPOB
Overall revenue captures everything. If we divide this by the number of operational beds we can get the revenue they are generating per bed. I don’t care now what is mix of outpatient vs inpatient until i am improving on this number. If outpatient are giving me better ARPOB, let that be the way forward.
A still better metrics is EBITDA / (number of beds).
What am i missing here ?
If i do a similar analysis on Apollo (included only their hospital business which is just half of their revenue) and Narayana. Apollo beats Narayana with 50%, still unsure of the numbers i calculated hence not posting here. But can this be the reason why Apollo commands such a market premium.
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