Competition In Health Care

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Competition in Health Care


The paper describes about the different forms of competition that take place in health care amongst the in various other types of health care organizations. It evaluates the benefits and pitfalls of competition in health care. It explains the essence of successful competition and the use of competitive intelligence in health care industry. It explains the influence competition on the services offered by health care organizations.

Competition in Health Care


Competition is powerful tool to make things better in society. Competition may involve companies, markets, countries, or organizations. Every organization requires a strategy to deliver best care to its customers. Competition has dramatically increased over the last decades in all organizations of education, arts, philanthropy and healthcare. Health care organizations must compete to deliver best care.


In health care economics, the competition among health care providers provides quality of care to meet demand efficiently. Competition is a state in which firms strive for a greater share in the market to sell the goods and their services. In a 'competitive systems' the patients have a choice , from where care is to be achieved and where payment is to be made either to private organizations or public organizations. Competition in health care industry benefits clients as it helps maintain cost and improve quality of care. It occurs due to the number of health care organizations are competing in a specific area of health. Globally, the trend of competition between health care industries is associated with reduced costs and high quality of care for patients (Morris, Devlin, & Parkin, 2007).

Forms of Competition in Health Care

Competition “In-The-Market”

Where licensed organizations compete for patients on daily basis without guaranteed activity revenues or volumes.

Competition “ For-The-Market'

In this type of competition, the wining health care provider gains the right to provide heath care services for a specific period ...
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