One of the trends marking the continuing transformation of the U.S.
health care industry is the dramatic increase in the pace of
competition. The heightened competition is taking place among hospitals,
health plans, physician groups, and drug companies, and between
physicians and hospitals, and hospitals and health plans. Listen to the
Looking Ahead: The Future of Health Care Policy podcast from National
Public Radio (NPR). Then, prepare a three- to five-page paper in which
you:
- Describe the different forms of competition that take place among various types of health care organizations.
- Evaluate the benefits and pitfalls of competition in health care
and suggest alternatives if competition was not the primary driver of
operations in the U.S. health care system. - Explain the elements of successful competition and the use of competitive intelligence.
- Describe the influence competition has on the services offered by health care organizations and the choices patients have.
Your paper must be three to five double-spaced pages (excluding title
and reference pages) and formatted according to APA style as outlined. Utilize a minimum of two scholarly sources
that were published within the last five years.
Please take time to review the APA samples provided before writing the paper: APA SAMPLE PAPER 6TH EDITION.pdf; APA Citations and reference page 6th Ed.pdf.
Expert Solution Preview
Introduction:
The U.S. healthcare industry is experiencing a significant increase in the pace of competition, which is taking place among different healthcare organizations such as hospitals, health plans, physician groups, and drug companies. This has influenced the mindset of medical practitioners, driving them to be more competitive to offer better services while maintaining profitability. In this context, this paper discusses the different forms of competition that take place among various types of healthcare organizations, evaluates the benefits and pitfalls of competition in healthcare, explains successful competition elements and the use of competitive intelligence, and describes the influence of competition on the services offered and patients’ choices.
1. Describe the different forms of competition that take place among various types of health care organizations.
Healthcare organizations experience various forms of competition such as price competition, quality competition, competition for market share, and competition for investments. Price competition involves offering services or products at lower prices than the competition, and it is the most common form of competition among healthcare organizations. Quality competition focuses on providing high-quality products or services at a reasonable price. It is a strategy used by healthcare organizations to stand out from the competition and increase their market share. Competition for market share is when healthcare organizations compete to gain a larger share of the target population. It can be through mergers and acquisitions, marketing campaigns, or offering unique services. Lastly, healthcare organizations compete for investments by attracting investors seeking profitable healthcare investments.
2. Evaluate the benefits and pitfalls of competition in health care and suggest alternatives if competition was not the primary driver of operations in the U.S. health care system.
Competition in healthcare has both benefits and pitfalls. The benefits of competition include the reduction of healthcare costs, improvement in the quality of care, and increased patient satisfaction. However, competition in healthcare can lead to the underpricing of health services to the detriment of patient care quality. It can also lead to medical practitioners looking to cut costs, making healthcare even less sustainable. If competition was not the primary driver of operations in the U.S. health care system, an alternative could be value-based care, which would focus more on providing quality healthcare services to patients rather than growing revenue.
3. Explain the elements of successful competition and the use of competitive intelligence.
Successful competition requires a healthcare organization to keep up with market trends, be innovative in its approach, and prioritize customer needs. Competitive intelligence helps healthcare organizations stay informed about their competition by gathering, analyzing, and disseminating competitor information. This information includes market trends, top performers in the industry, and recent developments regarding the competition. Furthermore, competitive intelligence helps healthcare organizations to make decisions based on objective factors and drive performance.
4. Describe the influence competition has on the services offered by health care organizations and the choices patients have.
Competition influences the services offered by healthcare organizations by pushing them to provide a wider range of services and products to stay competitive. It also drives healthcare organizations to improve the quality of care that they offer, making use of the latest technologies and innovative approaches to healthcare. Additionally, Competition allows for a wider range of medical options and choices for patients, thereby increasing their level of satisfaction with healthcare services. Patients now have access to a broader range of healthcare options to select from, and this incentivizes healthcare organizations to provide consistent quality care.
Conclusion:
Competition in the healthcare sector is increasingly driving medical practitioners and organizations to improve the quality of services offered while keeping healthcare costs low. This paper has discussed the different forms of competition among healthcare organizations, the benefits and pitfalls of competition, the elements of successful competition, and the use of competitive intelligence. It has also explained how competition influences the services offered by healthcare organizations and the choices that patients have. Healthcare organizations must carefully consider competition’s effect in creating a more patient-centered value-based care that prioritizes patient needs and care quality above all else.
