Factors Of The Regulatory Forces In The Healthcare Industry

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Regulatory Factor: Regulatory bodies of government hold over the hospitals. These bodies can impose restrictions on the hospitals as and when needed. They curtail or regulate the actions of the hospitals. From time to time regulatory bodies give guidelines to the hospitals, inspect the hospitals and thereby keep watch on them. Thus, the regulatory force is one of the significant factors that influence healthcare services. Competition Factor: Modern age is the age of competition. Competition factor has entered in every field of life. The healthcare industry is no exception to it. To keep pace with changing time, the hospital needs to welcome innovation and use modern technology. Hospitals have to struggle for their existence in today’s competitive world. Competition may be of two kinds, pricing and servicing competitions. Service competition is much more important than pricing competition. Management in health-care services: In comparison to developed nations, India, though one of the most…show more content…
When a public organization has no profit objective, it is difficult to measure its performance. Although, the measurement of the output of non-profitable hospitals is possible in financial terms, we cannot evaluate their performance based on their income statements. The other difficulty with regard to control is that services cannot be stored like manufactured goods. If the occupancy rate is less on a day, there will be minimal utilization of the services of the staff present in the hospital on that particular day. Unutilized services cannot be stored for the subsequent day. Therefore, the organization will suffer a financial loss. In spite of numberless difficulties, hospitals must adopt management control methods prevalent in the healthcare industry. These methods should be in harmony with the objectives of the organization and their fulfillment through
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