SERVQUAL has been widely studied across various industries including health care sector by researchers world wide. Most of these studies have used general linear model to draw their findings. However using GLM to study service quality in various hospitals amounts to shear violation of the basic assumption of independence of observations as the data are nested and clustering in data could be easily observed which was ignored by researchers. This study seeks to plug this loophole by using Hierarchical modeling on R software. Data from 250 patients was collected from Big and Small hospitals from the commercial capital of central India and analyzed. They showed the existence of 5 factors quiet in accordance with Parasuraman (1988) findings. There after hierarchical modeling was applied with these factors as dependent variables. Findings showed that on Tangibility there is no significant difference in perception across gender, age, annual income and education qualification. Findings further shows that Reliability, Assurance, Responsiveness and Empathy varies across gender

Keywords : Servqual, Service, Quality, Health Care, Regression, Clustering , Hierarchical Modeling