Package pricing in hospitals

Abstract

Package pricing has become popular among hospitals across India. Many hospitals quoted package prices for treatments such as heart surgery, knee replacement etc. Irrespective of the expenses and the duration of treatment, the patient would pay only the agreed price since it was a contract between the patient and the hospitals. Hospitals cannot charge more than the package price under any circumstances. Many state governments insisted on such contracts as there was a perception in the public that the hospitals insisted on unnecessary diagnostic tests whose profit margin was high. Hence it has become imperative to find the right package prices and factors affecting the cost of the surgery. Dr Narayanan from DAD hospital is faced with a dilemma as to how to come up with the right package price. In this project we are using Multinomial Regression to come up with a model that will help DAD find out the factors that will help them come up with the right packages for patients.