This paper will reflect and describe the different forms of competition that are among various types of healthcare organizations. I will explain and evaluate the benefits and downfalls of competition in health care and suggest alternatives. It would also, explain the elements of success for competition and the use of competitive intelligence with the influence that competition has on the services offered by healthcare organizations and the choices patients make. Health Care comes in many types of industries and competition among businesses that have long been encouraged as a mechanism to increase the value for the patients. (Spath & Abraham 2014). With most industries many firms are competing to sell more of their products or services to the customers, their purpose is to capture more of the customer’s dollar.
There are many companies that offer whatever product they think people need at any price and believe that people are willing to pay. So, the customer buys the products then the firm somehow will succeed; but if not then they will fail. This is the nature of competition. Competition today is to create winners and losers but inspire the firm to improve. Competition comes in many forms of the health care industry that functions differently. However, with the free market principles of supply that demand and is distorted by an extensive regulatory framework of both Federal and State levels of the government. The State regulators may not allow all HSO in one geographic market area to offer services. But price caps may prevent HSO’s from charging whatever price that individuals are willing to pay for their health care services. Within the Pharmaceutical companies, they are free to develop new medications they want but they must get approved by the Food and Drug Administration before the medication can be put out on the market and sold in the United States.
Insurance Plans helps individuals in receiving services from certain HSO’s and other hospital departments, but they must also, provide health care services to people even if they cannot pay at that time for services. (Path and Abraham,2014). So, with the healthcare industry competition, it does have an impact on many relational perspectives. But there have been several studies that show the relationships between competition and the quality of the healthcare system. Which include cost, competition and patient satisfaction with the Insurance Plan, but they are competing for the cost to the payer, and the quality of a provider network, screening and the quality assessment procedures. The situation is important when we look to approach different insurance plans.
During my research there are some elements of competition in the healthcare industry such as; price, quality, convenience and superior products. But there is one type of competition that has taken place in the healthcare organizations which is the ones that business has been dealing with for many years. There are potential competitors, which are companies that are currently working from other industries or markets. There are also some other firms that are operating in other geographic regions who are looking to expand their market sales. With these other firms, they are to expand their product lines, the customers then must decide to integrate backward I the industrial value chain where the suppliers are then attracted by the margins that they choose to integrate forward in the chains of a small strategically weak firm. When a firm is weak it becomes a serious threat of entry but when it is required by a company it can reduce or eliminate their weakness.
When a firm feels they are threatened they then move into their markets at this point they might retaliate by moving into the opposite direction then there are the firms that may have a possible fit with the critical success factor in the industry. Moseley, (2009). Hospitals compete for the physicians by offering more highly trained staff and better equipment. However, the hospitals also, compete for the patients by providing them with more services, better amenities, and or discounted prices. We know that there is a stronger competition for the cutting edge of technology and medical Locally and Globally.
Competition now plays an important role when it comes to the delivery of healthcare in the United States. It drives the innovation and ultimately leads to the delivery of better healthcare but it also results in lowering the prices and access to health care and health Insurance Let’s think about it there is much business that is in a competition such as; Hospitals and Physicians and with that it intensifies the development of managed care organization. In addition, it has put pressure on the cost but managed care plan has pressured providers to not stay in the hospital and has offered outpatient treatments. Macfarlane, (2014). This has decreased the cost and increased in choice without sacrificing the quality. Lowering the cost has improved the efficiency of health care insurance that has made it affordable and available. Another competition benefit in healthcare is the innovation in the healthcare technology. There are a few unexpected difficult when expanding into new geographies like over-optimistic in a patient’s projections in a patients number, revenues, and profitable, misjudging the local income of those that cannot pay. Another is to stop over-investing in equipment. Competition does have restricted rules collaboration among service providers.
In conclusion: I’ve learned the different forms of competition that take place among various types of healthcare organizations. Evaluate the benefits and pitfalls of competition in health care. It would also, explain the elements of successful competition and the use of competitive intelligence and the influence competition has on the services offered by healthcare organizations and the choices patients.
Moseley, G (2009). Healthcare competition, Strategic mission, and Patient Satisfaction:
Macfarlane, M. (2014). Sustainable Competitive Advantage for Accountable Care Organizations. Journal of Healthcare Management, 59(4), 263-271. Retrieval from EBSCOhost,
Spath, P., & Abraham, S. (2014). Strategic Management for Healthcare Organizations,