Competition In Healthcare

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Recommended: 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

Within the health care industry, competition impacts several relational perspectives; with numerous studies reporting the 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); between competition and health care system costs (Robinson and Luft, 1985; Robinson and Luft, 1987; Robinson and Luft, 1988; Zwanziger and Melnick, 1996; Zwanziger and Melnick, 1988; Robinson, 1991); and between competition and patient satisfaction (Miller, 1996; Brook and Kosecoff, 1988). These studies show that competition is capable of increasing value for customers over time. Quality and process improvements …show more content…

price, quality, convenience, and superior products or services); however, competition can also be based on new technology and innovation. A key role of competition in health care is the potential to provide a mechanism for reducing health care costs. Competition generally eliminates inefficiencies that would otherwise yield high production costs, which are ultimately transferred to patients via high health service and delivery costs.
The first component is comprised of individuals who provide health care (e.g. physicians and other practitioners) The second component is comprised of the organizations that provide health care services (e.g. hospitals, hospital systems, or other health services organizations) The third component comprises organizations that provide health care financing and insurance and health care plans (e.g. health management organizations (HMO), preferred provider organizations (PPO), and various insurance

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