Different Forms Of Competition Among Health Care Organizations

The top 3 competitors in my industry would be minute clinics, private sector hospitals, and national healthcare. The strategy that differs from the VA hospitals and the other competitors is that we are strictly focused on our veterans.

The health care industry is a major industry with a peak in employment opportunity in most of the United States. The states of Illinois, Indiana, and Wisconsin created the largest creation of jobs for General Medical and Surgical Hospitals, with over 160,000 jobs in 2013 alone. ( brage.bibsys.no) Workers in Individual and Family Services are at the highest peak in Pennsylvania, New Jersey, Delaware, and Maryland, covering over 50,000 jobs. The healthcare industry is an oligopoly. An oligopoly is an industry structure in which market power is shared among a limited large producer. While some small producers may also function in the market, there are a few large companies that dominate. Though it’s possible that an oligopoly can be competitive

Competition has its dark side. It is reported that over 40% of California hospitals have very poor patient safety as per the national report card and they are said to be poorly performing hospitals. Competition thus has decreased the patient safety and any hospital that wishes to remain in the market ought to consider this key feature. The hospitals taken for analysis have not released any data or report that can be researched pertaining to this issue. The projection of the hospital as very safe for patients would be the best marketing strategy. (Terhune, 2012)

“Within the health care industry, competition impacts several relational perspectives; with numerous studies reporting the impact of increased competition. For example, several studies have examined the relationships between competition and quality of health care (Zwanziger and Melnick, 1996; Enthoven, 1993; Kassirer, 1995; Chassin, 1997); between competition and health care system costs (Robinson and Luft, 1985; Robinson and Luft, 1987; Robinson and Luft, 1988; Zwanziger and Melnick, 1996; Zwanziger and Melnick, 1988; Robinson, 1991); and between competition and patient satisfaction (Miller, 1996; Brook and Kosecoff,

Consumers in the health care field value competition in many circumstances due to the fact that it assist that it can decrease costs, improve quality of health care delivered and promotes latest technology and innovation. Therefore, it is the Federal Trade Commission’s (FTC) duty as a law enforcer to thwart firms from engaging in anticompetitive behaviors that could potentially prevent the above described from happening and ultimately harm consumer. Additionally, the FTC provides proper guidance to physicians, health professionals, hospitals and providers to assist in obeying the nation’s antitrust laws (Gamble, 2014).

Both organizations have mission statements, and visions that are the foundations for their organizational structures, each organization is aligned with a specific strategy to meet their goals. While both offer medical services their approach in offering such services will vary in their operational approach. Additionally, each has the ability to respond to a continuously evolving health care environment, but the for-profit would seemingly have the ability to adapt within a greater response time especially with regards to variables that would impact profitability. Federal/Local/ State rules and regulations govern both business models, but the nonprofit must strictly adhere to those guidelines in order to maintain their desired level of classification.

Know Your Market: For many health systems, competing effectively under value-based care models may mean creating regional partnerships. Hospital leaders must first determine the number of patients they will need to care for to be profitable under various value-based care models

The demand for health care service is increasing steeply as there are more people starts to recognize the benefit if they enroll to one of the health care. From consumer point of view, they are always looking for the best quality of the product and service with the least amount of money. Today, the demand for premium healthcare services have increased even though the price is relatively high. If a consumer were offered a better service than the one she has paid, the consumer will switch plans with a better benefit for them. The competition for healthcare service between companies is called perfect competition. Perfect competition offer consumer with identical product with different brand and is hard for them to

I am currently in the forever changing medical field. As a health care provider we have many competitors out there. Our top three competitors are other assisted living facilities, group homes, and hospitals. Our strategy seems to be just like other assisted living facilities, rehabs, and hospitals; however group homes has gotten us beat. They offer the same things we offer; such as therapy, doctor & dental visits, gourmet meals, great activities, but it is in a home setting. From the outside looking in, you could not tell that it’s actually a medical facility. The residents/patients are more comfortable and enjoy their stay. They are prone to more one on one care because most group homes only has about 10 patients at a time. To stay alive in

Developing strategic health care partnerships between health care systems is an effective way for health care centers to enlarge the number of health care services they can provide to their consumers. Health care marketing officers can market those expanded services to their consumers to provide them with a vast array of health care options to pick from. Furthermore, health care system partnerships improve the quality of care provided to patients by increasing the standardization, coordination, and integration of health care resources (Ellis & Razavi, 2013). Thus when health care resources are better coordinated and integrated, health care systems can provide services more efficiently and cost-effectively, which in turn makes health

Currently, I am a Patient Services Coordinator in the healthcare industry. This industry often experiences Porter’s five forces: barriers to entry, bargaining power of suppliers, existing rivalry, bargaining power of buyers, and the threat of substitutes. The healthcare industry has many barriers to entry. The main barriers to entry in the healthcare industry include the huge capital requirements and adherence to the various policies developed by the government and other government agencies. Parnell (2004) note that government has set in place substantial regulatory requirements for healthcare organizations.

Another group often blocked is complementary or alternative health care practitioners. These restrictions and the insurance industry unwillingness to pay for these services, gives the physicians an almost monopolist control over health care. Providers must be able to enter the market for competition to work and there must be many providers vying for the patient. To get the most out of health insurance plans Consolidation of hospitals and multispecialty group practices increases the negotiating leverage of the group but in certain areas of the US a single large medical system has become the sole provider of major health service thereby restricting competition (Shi & Singh, 2008). This consolidation while giving the hospitals and group practice leverage when negotiating prices of supplies and services tends to increase the price of health care to the patient because there is no longer any competition (Shi & Singh, 2008). For these reason “competition will remain less effective in most health care markets, because the prerequisite for fully competitive markets are not fully met” (Federal Trade, 2004, p. 20).

When looking at the healthcare field, a lot of measures that play a role to evaluate competition. Competitive strategy is “the strategy an organization chooses as the way it will succeed” (Kroenke 2017). I think the 3 measures that should be used to evaluate the competition are the geographic market area, customer satisfaction, and quality of service.

Health Care Organization mergers have increased over the last five years due to the passage of federal healthcare reform legislation combined with other factors. It encourages that within the next few years; there will be a key period of merging for healthcare organizations. This term paper will observe the reasons for mergers and how they are reshaping and impacting health delivery.

The success of any organization depends on its available resources and the core competencies it has, and the health care organization is no exception. The more they create value for its customers the more growth and success could be enjoyed. The value could be delivered to its customers by the core competencies it has and the way they utilize the resources.