Healthcare Pricing Variations in Common Surgical Procedures: Empirical Evidence from a Developing Private Healthcare System
DOI:
https://doi.org/10.64292/dsim.213Keywords:
Pricing variations, policy reforms, unilateral price fixing, information asymmetry, policy parameters, legal and regulatory frameworkAbstract
This study investigates the dynamics of healthcare pricing within Sri Lanka's expanding private health sector, focusing on ten common surgical and diagnostic procedures across three provinces. An analysis of patient fee data from over 1,600 patients covering eight major private hospitals demonstrated statistically significant fee variations (P < 0.001) across hospitals and provinces. The Western Province consistently recorded higher hospital and clinician fees, indicating the impact of market concentration, affluence, and regional demand elasticity. These results reflect broader inefficiencies—unilateral price determination, clinician influence, and information asymmetry—undermining cost transparency. Despite proximity between hospitals, marked differences persisted, revealing structural segmentation within the healthcare market. Such disparities challenge the fairness and sustainability of Sri Lanka's universal health coverage. The study concludes that establishing standardized pricing mechanisms and regulatory benchmarks tied to national per capita income could stabilize market behavior and ensure more equitable healthcare access in developing private healthcare economies.
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The data supporting the findings of this study are available upon request from the corresponding author.
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Copyright (c) 2026 Kanchana S. Narangoda, Estie Kruger, Marc Tennant, Apsara Pitigalaarachchi
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