Porter's Five Forces Of Competition In Health Care

1629 Words 7 Pages
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 ensures that the products and services being provided are better and will satisfy the customer’s needs. “ Often companies are forces at any time to offer whatever product they think the people need at any price they believe people are willing to pay. If they succeed, customers will buy the …show more content…
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

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