To improve Free Cash flow/(number of beds), they are focussing on ALOS. ARPOB is not a redundant metric. If length of patients staying in the hospital decreases, they can cater to more patients within same infrastructure. Increase volume of medical services for same infrastructure. Increase Overall revenue with reduced requirement for capex.
This will lead to increase in ARPOB, but, that is the resultant KPI, output of the process. And, increase in ARPOB can also be achieved by increasing Prices of medical procedures, deviating from efficiency in business operations. And their purpose of providing affordable medical facilities.
Rather, they are focussing on increasing quality of Input.
And ARPOB cannot be replicated across the whole infrastructure. But, learnings for reducing ALOS can be scaled across the whole infrastructure.
Sorry, I haven’t studied Apollo, so cannot comment on them.
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