Comparative costs of major surgeries across countries

CAT 2007 Slot 1 · DILR · Medium · Data Interpretation

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Passage / data set

The Table below shows the comparative costs, in US Dollars, of major surgeries in USA and a select few Asian countries.

ProcedureUSAIndiaThailandSingaporeMalaysia
Heart Bypass1300001000011000185009000
Heart Valve Replacement160000900010000125009000
Angioplasty5700011000130001300011000
Hip Replacement430009000120001200010000
Hysterectomy200003000450060003000
Knee Replacement40000850010000130008000
Spinal Fusion620005500700090006000

Exchange rates: 1 USD = 40.928 Rupees (India), 3.51 Ringgits (Malaysia), 32.89 Bahts (Thailand), 1.53 S Dollars (Singapore).

Comparative cost of poor quality (in USD '000):

ProcedureUSAIndiaThailandSingaporeMalaysia
Heart Bypass03324
Heart Valve Replacement05455
Angioplasty05546
Hip Replacement07558
Hysterectomy05654
Knee Replacement09644
Spinal Fusion05656

Question 1 of 4

A US citizen is hurt in an accident and requires an angioplasty, hip replacement and a knee replacement. Cost of foreign travel and stay is not a consideration since the government will take care of it. Which country will result in the cheapest package, taking cost of poor quality into account?

  1. A.

    India

  2. B.

    Thailand

  3. C.

    Malaysia

  4. D.

    Singapore

  5. E.

    USA

Answer

C

Explanation

Total cost = Base cost + Quality cost (in USD '000):

  • India: (11+5)+(9+7)+(8.5+9)=16+16+17.5=49.5(11+5) + (9+7) + (8.5+9) = 16 + 16 + 17.5 = 49.5
  • Thailand: (13+5)+(12+5)+(10+6)=18+17+16=51(13+5) + (12+5) + (10+6) = 18 + 17 + 16 = 51
  • Malaysia: (11+6)+(10+8)+(8+4)=17+18+12=47(11+6) + (10+8) + (8+4) = 17 + 18 + 12 = 47
  • Singapore: (13+4)+(12+5)+(13+4)=17+17+17=51(13+4) + (12+5) + (13+4) = 17 + 17 + 17 = 51 Cheapest is Malaysia (47 thousand USD).

Question 2 of 4

Taking the cost of poor quality into account, which country/countries will be the most expensive for knee replacement?

  1. A.

    India

  2. B.

    Thailand

  3. C.

    Malaysia

  4. D.

    Singapore

  5. E.

    India and Singapore

Answer

A

Explanation

Total cost for Knee Replacement:

  • India: 8.5+9=17.58.5 + 9 = 17.5
  • Thailand: 10+6=1610 + 6 = 16
  • Malaysia: 8+4=128 + 4 = 12
  • Singapore: 13+4=1713 + 4 = 17 Most expensive is India (17.5 thousand USD).

Question 3 of 4

Approximately, what difference in amount in Bahts will it make to a Thai citizen if she were to get a hysterectomy done in India instead of in her native country, taking into account the cost of poor quality? (It costs 7500 Bahts for one-way travel between Thailand and India).

  1. A.

    23500

  2. B.

    40500

  3. C.

    57500

  4. D.

    67500

  5. E.

    75000

Answer

D

Explanation

In Thailand: Base (4500) + Poor Quality (6000) = 10,50010,500 USD. In India: Base (3000) + Poor Quality (5000) = 8,0008,000 USD. Travel cost: 2×7500=15,0002 \times 7500 = 15,000 Bahts =1500032.89≈456.06= \frac{15000}{32.89} \approx 456.06 USD. Total cost in India =8000+456.06=8456.06= 8000 + 456.06 = 8456.06 USD. Difference =10,500−8456.06=2043.94= 10,500 - 8456.06 = 2043.94 USD. In Bahts =2043.94×32.89≈67,225≈67,500= 2043.94 \times 32.89 \approx 67,225 \approx 67,500 Bahts.

Question 4 of 4

The rupee value increases to Rs.35 for a US Dollar, and all other things including quality, remain the same. What is the approximate difference in cost, in US Dollars, between Singapore and India for a Spinal Fusion, taking this change into account?

  1. A.

    700

  2. B.

    2500

  3. C.

    4500

  4. D.

    8000

  5. E.

    No difference

Answer

B

Explanation

India base cost in rupees =5500×40.928=225,104= 5500 \times 40.928 = 225,104 INR. With new exchange rate (35 INR/USD), base cost in USD =22510435≈6431.5= \frac{225104}{35} \approx 6431.5 USD. Total cost in India =6431.5+5000=11,431.5= 6431.5 + 5000 = 11,431.5 USD. Singapore total cost =9000+5000=14,000= 9000 + 5000 = 14,000 USD. Difference =14,000−11,431.5≈2568.5≈2500= 14,000 - 11,431.5 \approx 2568.5 \approx 2500 USD.

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