Competition in Health Care Essay

For this assignment the class was instructed to describe the different forms of contention that take place among various types of wellness c be organizations, evaluate the receiptss and pitfalls of opposition in health c ar and suggest resources if challenger was non the particular driver of operations in the U.S. health c are system, explain the elements of booming ambition and the put on of free-enterprise(a) intelligence, describe the bewitch competition has on the services beseeched by health bring off organizations and the choices patients postulate. Health treat as in all industries, competition among businesses has long been encouraged as a mechanism to change magnitude take account for patients. In the overwhelming majority of industries, firms manage with each other to sell more than produces or services to customers, their intention being to capture more of the customers dollar (Spath & Abraham, 2014). some(prenominal) companies are emancipate at any t ime to offer some(prenominal) products they think slew need at any price they debate people are leave aloneing to pay off. If customers will buy their product they will succeed if not, they fail. This considered the nature of competition. controversy creates winners and losers inspires firms to constantly improve.Competition in legion(predicate) sectors of the health care attention functions differently. The usual free market principles of supply and withdraw are distorted by an extensive regulatory framework at both the federal and state levels of government. State regulators whitethorn not digest all HSOs in one geographical market area to offer particular services. Price caps may prevent HSOs from charging whatever price people are willing to pay for healthcare services. Pharmaceutical companies are free to develop any new medication they want but essential get approval from the Food and Drug Administration before it flowerpot be sold in the United States. redress p ictures may carry on people to receive services from certain HSOs and not others. Hospital need departments must provide healthcare services to people even if they cannot pay for those services (Spath & Abraham, 2014). In the health care industry, competition has an impact on many relational perspectives. on that point have beenseveral studies examining the relationships between competition and quality of health care, competition and health care system cost, and competition and patient satisfaction. Some elements of competition in health care are price, quality, convenience, and superior products and services.One type of competition that takes place in health care amongst the various types of health care organizations is the businesss existing competitors. The existing competitors are the ones that the business has been dealing with for many years. There are also potential competitors, which are companies that are currently operating in another industry or market, but show inter est in entering the businesss industry or market. Some examples are firms operating in other geographic regions seeking to expand their markets, firms go similar and related, but not directly competing, products that wish to expand their product lines, customer firms that decide to integrate backward in the industrial value chain, suppliers attracted by margins may choose to integrate forward in the chain, a small, strategically weak firm becomes a serious threat of founding when it is acquired by a company that can reduce or come about the weaknesses, firms that feel threatened by a move into their markets might retaliate by moving in the opposite direction, and firms that have a come-at-able fit or synergy with the critical success factors in the industry (Moseley, 2009).Attention must also be paid to indirect competition, those entities pass products or services that may serve as substitutes to the businesss products or services in the eyes of its customers (Moseley, 2009). Hospitals also compete for physicians by offering more highly trained supportive staff and/or better equipment. Hospitals are more likely to compete for patients by providing more services, better amenities, or discounted prices. There is a strong competition for acid edge technology and medical talent locally and globally. Hospitals also have to compete for inclusion in insurers provider networks. Insurance plans compete for cost to payers, quality of provider networks, credentialing screening, and quality assessment procedures. Competition has played a vital role in shaping the slant of healthcare in the United States. Competition drives innovation and ultimately leads to the oral communication of better healthcare.Competition results in lower prices and broader access to health care and health insurance. Competition among and between hospitals and physicians intensified with the development of managedcare organizations. In addition to putting pressure on costs, managed care p lans have pressured providers to use shorter hospital stick abouts and to offer alternative outpatient treatments (Macfarlane, 2014). This led to lower costsand an increase in choice without sacrificing quality. Lower costs and improved readiness has made health insurance more affordable and available. Another benefit of competition in health care is the innovation in healthcare technology (endoscopic surgery, anesthetic agents available in ambulatory surgery centers). There are many competitive success stories in healthcare in the area of pharmaceuticals, urgent care centers, and elective surgeries. Competition has some pitfalls in healthcare that includes the time and costs that it takes for healthcare organizations to compete against others.Other park pitfalls are unexpected difficulties when expanding into new geographies, over-optimistic projections in patient numbers, revenues, and profit baron, misjudging local income levels and ability to pay, and underestimating local co mpetition. Another pitfall may be over put in equipment. Competition has severely restricted collaboration among service providers. An alternative to competition would be collaboration between providers or fixed prices. supremacy is not achieved by ignoring your competition but rather by anticipating competitive issues and influences so you can always have a proactive plan and strategy for staying ahead of your competition.As in all industries including health care the competition among businesses has long been encouraged as a mechanism to increase value for patients. There are many forms of competition that have an influence on services offered by health care organizations. The competition comes from not only other practices, but can include anyone or anything that may influence a prospective patient to not become a patient of an organization. Organizations that fail to deliver products that satisfy customers needs will briefly go out of business. Strategic thinking and planning enables organization to stay ahead of the competition.ReferencesMacfarlane, M. (2014). Sustainable Competitive Advantage for Accountable Care Organizations. diary of Healthcare Management, 59(4), 263-271. Retrieval from EBSCOhost, www.ashford.edu/libraryMoseley, G (2009). Health Care Competition, Strategic Mission, and longanimous Satisfaction Research Modeland Propositions. Retrieved from www.ncbi.nln.nhi.gov/. Spath, P., Abraham, S. (2014). Strategic Management for Healthcare Organizations, Bridgepoint Education, Inc. www.ashford.edu/books.