Competition in the Healthcare Market

Published: 2019-10-15 07:00:00
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Both for-profit and not-for-profit health care organizations contribute to the quality of healthcare. The United States of America has both sectors playing an active role, but the existence of more for-profit organizations improves the level of competition among the players, thereby enhancing the quality of care delivered as a result. Healthcare investors aim at enhancing their earnings through the addition of equity, enhancing their marketing opportunities and growing their organizations by investing in effective technology and state of the art assets to attract more clients to their facilities by delivering high quality care (Rivers & Glover, 2008). As a result, it is apparent that markets with more for-profit healthcare firms are more competitive because the players act to offer the best services to beat competition, hence, strive to meet customer needs by introducing policies and procedures that protect them against any negativity in their organizations. The combined pursuit for better services and products enhances competition between for-profit organizations and prompts non-profit organizations to follow suit. Consequently, this alleviates the healthcare services provided. Additionally, healthcare consumers have varying needs and wants, and to fulfill them, they only seek the services of competitive organizations that will reciprocate the value for their money. Such quality services are mostly provided by for-profit organizations (Gaynor & Town, 2011).

Several factors contribute to healthcare client satisfaction, including the interaction between health professionals and clients, the punctuality in the execution of processes, the attitudes of attendants and the level of trust, empathy as well as sensitivity to patients issues (Rivers & Glover, 2008). In most instances, for-profit organizations hire experienced, effective and educated personnel to deliver services. As healthcare professionals, such as nurses and physicians, realize the stiff competition within the market and respective institutions, they are bound to improve their professionalism and competence. As a result, they improve their level of efficiency to keep their jobs, attract higher pay packs or attain higher ranks in the organizations. The stiff competition brought about by for-profit firms and the resultant higher level of commitment propels the healthcare sector to greater heights by ensuring both for-profit and not-for-profit health care institutions deliver high quality services to their clients (Rivers & Glover, 2008). Therefore, it is true to opine that markets, where more for-profit firms exist, would be inherently more competitive.


Gaynor, M., & Town, R. J. (2011). Competition in health care markets (No. w17208).

National Bureau of Economic Research.

Rivers, P. A., & Glover, S. H. (2008). Health care competition, strategic mission, and patient

Satisfaction: research model and propositions. Journal of Health Organization and Management, 22(6), 627-641.


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