Hospital Pacific Cataract And Laser Institute

2254 Words10 Pages
Background Statement There is a concern that the coordinator of the clinic has noted about the hospital Pacific Cataract and Laser Institute. The hospital is well known for the services that they offer to their patients, and they face a lot of competition from the hospitals that offer the same service. One of the Doctor’s, Dr. Everett, is concerned about the kind of pricing that their major competitor in the Laser surgery is offering. The Canada based hospital is advertising the surgery for the cost of $900 while the estimated cost of the surgery for the surgery ranges from $1750 to around $ 2000 (Lawrence & Morris, 2002). It comes as a surprise, as the advert is considered to be inappropriate by the PCLI doctors. The variable costs of…show more content…
It is mainly due to the cost, especially as many insurance firms do not cater for the whole cost of getting the surgery. PCLI offers good services to their patients, but the lowering of the prices of the competitors’ means that they would prefer it more. The clinic then needs to come up with proper strategies to ensure that they respond well to their competitors. Major Problems and Secondary Issues The major problem that the hospital is facing is the reduction of price by the competitor. Price is one of the common strategies that organizations use to attract many customers. In the case, the Lexington Laser Vision has reduced its prices to what their fellow competitors cannot reduce to, as they would make losses. The hospital needs to think of the best strategies that they can incorporate before they can decide to lower on the prices, as lowering might lead to making losses, especially because the procedure is too expensive. Controls on price are known to discourage the functioning of the market, as when the hospitals lower the price then it is expected that the resources in that institution will leave to look for better returns. It is important that careful analysis is done on the facts that they require and consider the best options that would help the competitors. In an industry such as the hospital, and especially in the LASIK surgery that is known to be sensitive to price, it might be a good thing to
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