Healthcare Porter's Five Forces Paper

Bargaining power of suppliers – Being a big player in industries that are dominated by smaller players also ensures that suppliers don’t have much bargaining power.

Some hospitals organize and group together to lower costs. These enables more bargaining power over the suppliers due to their collective size. This causes competitors have also to deal with the final payers that are sometimes the insurance company that try to minimize their costs and influence the type of patient care. Even if the buyers are not directly the doctors, the suppliers have to target them since they are advisers providing influence to the decision process. This gives tremendous bargaining power over the suppliers of medical devices enabling better competition and ability to absorb the pressures of the t healthcare system.

The Health care industry has many policies, rules and regulations that have to be followed in order to have a successful company in today’s world. The Health care industry has many policies that keep companies in compliance with all the rules and regulations in order to protect the consumers, patients and employees. In every hospital, doctor’s offices, therapy clinics, etc, there will always be certain protocol of running a successful and thriving business. A certain point in time where these policies were made, there was a process to developing a

Healthcare has drastically changed over the years in the United States. As our population is growing in size, a shortage of the number of health care professionals is also growing. Entrepreneurs have greatly benefited the world of health care by assisting with creating more jobs, producing products and services to assist and meet the growing needs of the population, and starting new business organizations to meet the needs of today’s economy. There are different forms of organizations and choosing the correct one is important, as it will affect the success or failure of the business.

The driving force of any business is that of competition; the healthcare industry is no different. The presence of competition provides a need to grow and continually offer quality services or products; however, the competition in the healthcare industry can be a very daunting at times. The cost of medical care is rising and patients are expecting a certain level of high-quality care due to the vast amount of information available to them. Patients are now armed with knowledge; they are true consumers who look for the best quality care for the very best price. This paper will discuss the

Therefore, the firm takes the position of a star in the BCG Matrix. High returns and that attract high costs. The challenges facing the organization rotate within the brackets of consumer bargaining power, competition threats and threat of substitutes for products and services within the healthcare industry (Jeffs,

Hospitals generally compete with each other. In such an atmosphere of fierce competition, “managers must assess the ability of their organizations to influence the prices paid for the services offered.” (Gapenski, 2008, p.194). And because most services provided in such marketplace are similar in nature, “the economic theory suggest that prices will be set forth by local supply and demand conditions. Thus, the actions of a single participant, whether the participant is a provider or a payer, cannot influence the prices set in the marketplace.” (Gapenski, 2008, p.194). In such a competitive market, the prices of services are constrained and as such, providers are said to be price takers. Moreover, some healthcare payers

Entry into the health insurance industry is blocked by high economies of scale, high capital requirements, and high government and

The healthcare industry has dramatically "changed in the past 20 years and these changes affect both" the workers and patients. The restructuring of the healthcare "industry refers to a sweeping" selection of changes in the organization such as ownership and the delivery of services. These changes have gotten customer concerned about the cost, increasing competition,and technological advances. As the policies and decision are making a move "outside of the individual doctor/patient relationship attention has focused on the quality of care." The issue at hand must be addressed at a national level in light of the fact that all 50 states are involved in the healthcare industry. There is a high demand for better healthcare coverage coming from the

Competition mainly surrounds the reputation and quality of care provided by the individual facilities (FranchiseHelp Holdings, 2015). The ability to acquire and maintain an adequate supply of healthcare works with the necessary qualifications and compassion required for the job will prove to be one of the biggest challenges of the industry.

The increase in competitive pressure has led to mergers among all types of providers in the healthcare industry; including hospitals, HMOs, nursing homes, and diagnostic laboratories. Recently, the number of mergers in the hospital sector has been extraordinarily high. Hospitals are under intense pressure to lower costs, improve care, and reduce the number of lost patients. More and more surgeries are performing in clinics and doctor's offices, so patients do not need to spend the night in the hospital. The structure of pricing in hospitals suggest that strategic effects of merger will unveil itself in the form of quality rather than price effects. If prices for treating many patients are fixed, hospitals may attempt to lower the quality of

In the United States, the organizational integration movement began during the 1990s and early 2000s as health organizations began diversifying existing operations by offering new products and services (Shi and Singh, 2008). The growing power of managed care was one of the main factors that triggered integration among healthcare providers. There are many organizational integration strategies which can involve outright ownership through a merger or acquisition, partnership of an entity, or having a stake in an organization without necessarily owning it (Shi and Singh, 2008). The two main types of service strategies used in integrated healthcare systems are horizontal and vertical integration. Horizontal integration is a growth strategy that

The General Hospital could overcome the cost incurred in the treatment as well as the salaries of the doctors by negotiating with the suppliers. The hospital may find some of the suppliers not willing to lower the items at the offered price however if they refuse to negotiate or lower the price the Hospital should secure another company that is willing to negotiate the prices as a back-up plan..

The health care industry experiences several challenges, from economic pressures as well as regulatory compliance issues. This comprises of industry consolidation, and lack of qualified professionals. The

The health care industry in many developed and developing countries is operating in its own traditional way and has been completely ignoring the latest advancements such as increased competition, safety of patients, shooting health care cost, increased malpractices costing human lives and more government control facilities such as Medicare. But in last decade or so, these factors have become more prevalent and competition within the industry has hiked up, and many hospitals