Competition in health care markets benefits consumers by reducing costs, reducing waste, improving quality, encouraging innovation, promoting growth and improving customer satisfaction (Glover and Rivers, 2008). Competition influences the direction of a company and will force a company to choose specific services, better pricing, and to demand quality products to retain the competitive edge for their patients.
Davenport and Harbage, 2009 published “Lack of competition in this critical marketplace means poor transparency and accountability, resulting in costly health care that harms our national health, bleeds our personal finances and the federal budget, and hinders our economic competitiveness. None of this is acceptable amid the worst slide in economic growth in 60 years (P. 1 Para. 1). Without competition there is little incentive to reduce profit or deliver a better quality service. Competition forces organizations to listen and comply with the needs of their patients.
The patient wants to know that the company they are doing business with is accountable for its choices. Patients have grown tired of hidden costs and are now demanding transparency in the health care field. Long gone are the days that physicians and hospitals named their price and sent a bill with no explanation of charges. Patients now shop around for their services to find the lowest price and the best service. Competition should take place in all levels of business this not only allows businesses to specialize and refine what they do.
This also allows people to receive a variety of services and lower pricing. Competition forces organizations to plan and evaluate their services to ensure their market segment needs are being met and evaluate the success of the services or products in place. This helps organizations connect to their local market segment by forcing them to communicate with their patients. Competition should improve the quality of products and the services available. Competition ensures that organizations are aware of their competition/patients and their services are priced accordingly.
Competition ensures the organization is always striving to improve its diagnosis, treatment options, and services available. Competition ensures that organizations are leading the way in procedures and technology so they service they give is the most innovative and dependable available. The needs of the patients are first and foremost as the survival of the organization depends on it. Organizations that provide the best services and reasonable pricing will continue to profit throughout the lifetime of the business. Competition should take place in the health care to promote transparency.
Patients should be able to see how much they are being charged for something and know how much it costs to provide a product. The US Department of Health and Human Services Published, (n. d. ) “For every other purchase that they make, consumers can easily get information about price and quality. When consumers have this information they can make better decisions. Consumers should share in the savings, in the form of lower premiums and more effective care, when they take an active role in health care decisions (Para 11). Competition impacts planning and evaluation in that not only do you have a standard benchmark but you have competition to base your standings against. The organization must use competitive intelligence to strategize what the competition is planning and use this knowledge to the organizations advantage by adding to their own services offered. The organization must consider what services, pricing, and customer base the competition has and what steps it must take to expand its customer base and continue to maintain its patient’s services and repeat business (Moseley, 2009).
Organizations can use their competition to focus the organization on its goals and to assess its situation. Competition helps to develop organizational goals, situational assessment and development indicators and this can be done using what your competitors are doing. In closing competition helps to ensure that organizations, stakeholders, and suppliers are listening and attending to the patient’s needs if they do not they will eventually fail.
Competition is necessary to improve the quality of care for the patients and efficiency in the hospitals ultimately giving patients piece of mind and satisfaction. Reference: Glover and Rivers, (2008). Health care competition, strategic mission, and patient satisfaction: Research model and propositions. Journal of Health Organization and Management, 22(6), 627-41. doi: http://dx. doi. org/10. 1108/14777260810916597 Health care competition, strategic mission, and patient satisfaction: research model and propositions, http://www. americanprogressaction. org/wp-content/uploads/issues/2009/03/pdf/c