Competition In Healthcare

Competition in healthcare

Within the healthcare industry of today, competition is rising drastically and it is also impacting several personal viewpoints; with numerous studies reporting the major impact of increased competition. For example, several studies have examined the relationships between competition and quality of health care (Zwanziger and Melnick, 1996; Enthoven, 1993; Kassirer, 1995; Chassin, 1997); according to research among competition and health care costs and among competition and patient satisfaction. Studies are showing that competition is capable of increasing value for customers over time. Quality and procedure developments lead to reduced costs, which in turn results in improved customer satisfaction. Detailed consideration is given to the outcome of competition, in the context of a volatile external environment, on the health care organization's strategic mission and goals and its internal environment in terms of health care quality and health care system costs, and how these relate to customer satisfaction.

Fuch (1988) illustrate that during the 1980s, the US government wanted to change health care in America via the use of market principles to assign scarce resources. However, Reinhardt (1996) reported that competition could not improve productivity in the health care industry because public and private insurance companies were paying for three-quarters of the health care bills. Likewise, Porter and Teisberg (2004) stated that competition in the US had become zero-sum-based, a situation in which health care system members are actively engaged in separating value instead of creating value.

In health care competition it involves one or more components for example: price, quality, service and accessibility. On the other hand competition in healthcare can also base on new technology and improvement.