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Competition in Healthcare

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Submitted By Ginagreen1
Words 1662
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Gloves On: The Presence of Competition in the Healthcare Industry
Gina Ruggiero
HCA 421
Instructor Celya Tilley
August 23, 2013

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 different forms of competition that takes place in health care, evaluate the benefits and pitfalls of competition while suggesting alternatives given competition were not the prime driver of operations in the healthcare industry, explain the essence of successful competition and the use of competitive intelligence and describe the influence competition has on the services offered by health care organizations and the choices patients have. Competition drives businesses to work at their full potential and forces them to constantly evaluate their business strategy and make changes when necessary. Competition also has the ability to force health care organizations to compete for business by lowering their costs of services provided; this competition takes place among hospitals, physicians and health plans. “Physicians may compete for patients who are able to pay for services and do not have health insurance, or for patients who have their expenditures paid for by third-party insurers. Physicians also compete on a non-price basis for location, colleagues’ referrals, and reputation (Rivers & Glover, 2008, pp.633).” It is...

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