The Business APAC Cloud Disruptors of 2019 Final File_Cloud | Page 22

HEALTHCARE ROADWAY
Prominence of Competition in the
ealthcare Industry
I
The second important component is comprised of
organizations that offer health care services like hospitals or
hospital systems. Hospitals tend to compete for third-party
payers, physicians, and patients. Hospitals use various
tactics to retain the physicians such as providing highly
trained staff and better equipments. To get more customers,
hospitals offer advanced services at reduced prices.
n the vast spectrum of the healthcare sector, there are
individual markets for primary care service, hospital
care, medical devices, pharmaceuticals, human
resource as well as medical and nursing education.
Therefore, the healthcare industry is one of the most
important industries. The competition in healthcare market
is highly profitable to consumers as it helps in reduction of
cost, improvement in quality, and further encourages
innovation. The competition also benefits customers as it
provides incentives for constant product advancements and
encourages higher level of service performances. To create
competitive environment, the customer must have multiple
procuring options and choices with reasonable pricings.
Similarly, the competition, regulation, and financial
incentives can be significant ways to improve quality in
healthcare. This also improves clinical outcomes and assists
the system to function more efficiently.
The third component includes organizations which provide
healthcare financing and insurance along with healthcare
plans. Competition in financing and delivering plays crucial
role in the healthcare industry.
Competition in Financing
The role of financing in healthcare competition is very vital.
Numerous healthcare systems have insurance coverage
through national, local, or common insurer while some
systems go with multiple and competing insurers. There are
cases in which the level of actual competition is moderated
by government regulations of a country and on the other
hand, even though there are multiple insurers in operations,
one cannot have the privilege to get it by personal choice
but is offered considering other factors such as professional
status.
The competitive market is all about exchange relation
between buyers and sellers. It is also the perfect market
which tends to offer the best possible outcome to both
buyers and sellers. Some are promoters of the competition
while some are not; promoters believe that competition
leads to lower prices, premiums, and resources use with
higher quality of cure than the non-competitive markets.
From the buyer’s and seller’s point of view, the competition
brings both good and bad news.
Further, some countries let insurers compete for business of
citizens while few provide more than 5 options to the
citizens from which they can choose. But in low and middle
income countries, the financial side is more around financial
security. The competing insures may bring down premiums
which may reduce price and improve quality.
Competition in various components of healthcare
industry
The healthcare industry mainly includes providers, buyers,
employers and patients. Further, there are few components
which are core to the industry and the first important
component contains individuals who provide health care. In
the medical market, there is a huge competition between
physicians as well as non-physicians such as psychologists
to draw patients towards their respective practices.
April 2019
Competition in delivering
The delivery of healthcare services provides a big ground
for the competition. The competition in delivering promises
certain benefits mostly in terms of cost and quality as
providers compete for contracts from purchasers. Moreover,
22
businessapac.com