Differential pricing in the hospital industry happens

  • Externally (between 2 hospitals)
  • Internally (within a hospital)


Between two hospitals, even to provide the same treatment, the prices differ. Even though the operation to be done might be the same, pricing differs due to the kind of service provided pre and post operation. Cost is associated with the kind of service you provide, and so the hospital is bound to charge the patient for it.


There is a price differentiation even between the two wards of the same hospital. There is difference between the general ward and special ward where the rooms are air-conditioned and extra services are provided. Thus the pricing would be different. Even the doctors visiting fees/consultation charges are different. Sometimes if the patient is very poor then the doctor may halve his fees.


In a hospital the process is divided into the following phases:


  • The joining phase,
  • The intensive consumption phase, and
  • The detachment phase and feedback.




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