Gloves On: The Presence of Competition in the Healthcare Industry
Gina Ruggiero
HCA 421
Instructor Celya Tilley
August 23, 2013

The driving force of any business is that of competition; the healthcare industry is no different. The presence of competition provides a need to grow and continually offer quality services or products; however, the competition in the healthcare industry can be a very daunting at times. The cost of medical care is rising and patients are expecting a certain level of high-quality care due to the vast amount of information available to them. Patients are now armed with knowledge; they are true consumers who look for the best quality care for the very best price. This paper will discuss the
Each of these components of competition in the healthcare industry has their benefits and their pitfalls, as well. Competition drives innovation and ultimately leads to the delivery of better healthcare. “Competition generally eliminates inefficiencies that would otherwise yield high production costs, which are ultimately transferred to patients via high health service and delivery costs (Rivers & Glover, 2008, pp.632).” Therefore, competition results in lower prices and broader access to health care services. Competition among and between hospitals and physicians intensified with the development of managed care organizations. In addition to putting pressure on costs, managed care plans have pressured providers to use shorter hospital stays and to offer alternative outpatient treatments (Botti, 2007). The managed care organizations (MCO’s) led to decreasing costs and an increasing amount of choices. The lower costs coupled with improved efficiency has made health insurance more affordable for many individuals even though millions still remain uninsured. Another benefit of competition in health care is the innovation in technology; endoscopic surgeries, anesthetic agents available in ambulatory surgical centers and advanced treatment options have made a huge impact on healthcare delivery. Of course where there are benefits there will also be pitfalls. Some pitfalls of competition in healthcare are the time and