The U.S Healthcare has been transitioning due to the new law that’s in effect called the Affordable Care Act. This law was signed into effect on March 10, 2010 and has reformed the way healthcare previous ran in the United States. With this transformation, there have been a significant amount of trends forcing the healthcare industry to a place of competitiveness. There has been competition seen amongst physicians, hospitals, healthcare plans, and insurance company’s and physician groups. This competition is based purely on consumer demand, which in turn will affect the price and quality when it comes to services being performed or purchased. Competition amongst business and industries has always been ongoing over time and encouraged. It
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This could also ne view as a horizontal there since the possibility of a new rival, new business trying to enter the industry along with the threat of substituting products for services. This is clearly seen between insurance companies suppliers, HMO, PPO, and preferred providers. While there is several benefits when it come to competition within a health care organizations there are also drawbacks and pitfalls that comes along. As the cost of health care continues to climb the quality of care patients are receiving seems to be wavering. As the present time there are no recommendation or solutions offered as to how to solve this problem, and this is why the industry needs competition more than ever as there is clearly a need for a …show more content…
“ Research has shown that competition in the health care system occur at the wrong level, over the wrong thing, in the wrong geographic market, and at the wrong time” (Harvard Business Review , 2015) Some of these issues are surrounding the poor choices from hospital employees, insurance companies. These changes should be made not in the health plans, hospital groups and health networks, but rather in treatment, prevention diagnosis along with supplying health tips on how to live a healthy life. Only at this level will they be able to really make a difference in each individual patient. This places more emphasis and focus on the patient versus the completion and cost to cure the
This could also ne view as a horizontal there since the possibility of a new rival, new business trying to enter the industry along with the threat of substituting products for services. This is clearly seen between insurance companies suppliers, HMO, PPO, and preferred providers. While there is several benefits when it come to competition within a health care organizations there are also drawbacks and pitfalls that comes along. As the cost of health care continues to climb the quality of care patients are receiving seems to be wavering. As the present time there are no recommendation or solutions offered as to how to solve this problem, and this is why the industry needs competition more than ever as there is clearly a need for a …show more content…
“ Research has shown that competition in the health care system occur at the wrong level, over the wrong thing, in the wrong geographic market, and at the wrong time” (Harvard Business Review , 2015) Some of these issues are surrounding the poor choices from hospital employees, insurance companies. These changes should be made not in the health plans, hospital groups and health networks, but rather in treatment, prevention diagnosis along with supplying health tips on how to live a healthy life. Only at this level will they be able to really make a difference in each individual patient. This places more emphasis and focus on the patient versus the completion and cost to cure the