Healthcare Assignment

Perfect competition in the hospital industry mainly focuses on the quality of services rather than price. Even though some people argue that there is no perfect competition in the hospital industry because healthcare facilities offer similar services, hospital industries are perfectly competitive.  Healthcare facilities are trying to reduce healthcare costs. Generally, competition eliminates inefficiencies that may yield high production costs that are ultimately transferred to patients through high health services and delivery costs.  In this regard, competition benefits patients since it helps s contain costs, improve quality and encourage innovation.   The competition in hospital industries encourages some hospitals to provide health insurance coverage at a low cost to their clients to allow patients to seek medical attention whenever they are sick. In this regard, many patients get motivated to visit the health facility since the services are offered at a lower price than other hospitals. Through insurance, the hospitals can also gain a competitive advantage when they provide better services at lower prices than competitors.  People may argue that hospital industries should not compete since their main role is to ensure patients are healed from their diseases. However, some hospitals have proper care and patents outcomes than other healthcare facilities. For example, patients may consider going to hospitals where they have the information about the physician in terms of their expertise, quality of care, and pricing. As a result, hospitals compete to ensure that they provide all the services patients require at the right time and create a good relationship with their clients. Healthcare Assignment

Today, hospitals are highly competitive, and most health facilities are trying to differentiate their services from other hospitals. For example, private hospitals offer services, care, environment, and experiences that patients cannot get in public hospitals. For instance, they can apply technology in the facilities by allowing patients to log in and get information about their treatments without going to the hospital. Since most hospitals are still storing patients’ data within individual databases, they are applying Electronic Health Records to provide accuracy, provide information about patients at the point of care, provide safer care and reduce medical errors.   Even though some do not believe in perfect competition in the hospital industry, new ideas are coming up, and people are becoming more innovative to provide better services in healthcare facilities.  People are also arguing that competition in the hospital industry is not working because the prices in the private sectors are very high and many people prefer going to public hospitals. Even private hospitals are providing affordable insurance coverage to patients. There are also some charges in public hospitals that people must pay to get the treatment they require. In this regard, both private and public hospitals are expensive, especially for those people who cannot afford to pay medical bills without insurance coverage. Therefore, both private and public hospitals must compete in terms of service delivery to get more clients.  At the same time, perfect competition attains efficiency in hospitals since healthcare providers compete and increase production hence lowering the prices that clients pay. Lower prices make healthcare providers more efficient in making a profit. For this reason, competition in the hospital industry is crucial since it benefits people from all levels of life.