The paper analyzes the competitors of the local health care organization in Indianapolis and discusses the strengths and weaknesses of the activities of the competitor organizations that exert the most intensive influence on the results of its work and the competitiveness. Conditions for the development of free competition in the market of Indianapolis are defined, and directions for the development of competition in the market of healthcare services are determined. At the stage of conquering the market of health services for private healthcare organizations, to create competitive advantages, directions for organizing marketing activities have been developed (Wijngaarden et al., 2012). Market relations involve the presence of competition, the free choice of health care providers, the conclusion of contracts between buyers and vendors of health services, the expansion of the independence of health care providers from government regulation. Health as a particular environment has its characteristics, one of which is the humanitarian orientation of the provision of healthcare services, which determines the priority of healthcare results over economic performance. The effect of market laws in health care is determined by the peculiarities of the market of health services (France, Taroni & Donatini, 2005).
Preservation and maintenance of a competitive environment are one of the tasks of state regulation of the market of healthcare services. The regulatory role of the state is expressed in the development of antimonopoly legislation and control over monopolies producing, for example, medicines. Competitors in the market of healthcare services are private practitioners, private healthcare organizations, state and municipal institutions. In order to withstand competition, it is necessary to have certain advantages of health administration services: acceptable price for the consumer, a large assortment, quality, convenient schedules for doctors, the location of the healthcare institution, consulting support by qualified specialists, discounts for certain consumer contingents, and a high service culture (Upson, et al., 2012).
One of the functions of the modern market of healthcare services is a competitive function, expressed in the professional and socioeconomic market competition of healthcare organizations for achieving high results in the diagnosis, treatment and rehabilitation of patients, in servicing patients, in the manufacture of medicines, and in their striving for a complete satisfaction of health needs in services and goods of increased demand. In the author’s opinion, the competitiveness of a health care service is a combination of the consumer and value characteristics of a health care service that determine its advantage over other services in the context of offering competing similar healthcare services that facilitate its allocation by consumers from the group of similar healthcare organization (France, Taroni & Donatini, 2005).
The market of healthcare organization operates with the interaction of the three most important parameters – the nature of demand, supply, and price. The defining moment in the needs of a healthcare organization is the individual’s need to preserve and multiply his state of health. In other words, the healthcare need is a lack of normality, a lack of personal physical and spiritual well-being, a lack of life, a lack of physical and mental freedom, and healthcare demand is the economic equivalent of the ability to meet the need for a health service. The market of healthcare organization cannot be viewed in isolation from other markets closely related to it: medicines and supplies; medical equipment; the labor of health care workers; scientific and technical developments in medicine.
The impact of other markets on the health care market is due to two main factors: 1) Influence on the level of costs. Healthcare organizations use healthcare equipment and materials produced in other industries. Accordingly, a number of prices for goods of these industries has an impact on the level of costs in health care. 2) Influence on demand. Some funds that consumers are willing to pay for healthcare organization provided to them are determined not only by the level of prices for a health organization but also by the degree of preference. With a stable economic situation in other markets, the incomes of businesses and citizens increase, and they are ready to allocate more funds for healthcare care (Upson et al., 2012).
In the economic crisis, the financial resources of the population are reduced, the demand for a paid healthcare organization is falling, and the effective demand of the population is reoriented to other markets. And their incomes also go there. From the analysis of competitors of the healthcare organization market in Indianapolis, the private healthcare organization offers the lowest prices when providing healthcare organization. This organization is the leader in patient care among private healthcare organizations. At the same time, the Organization is the leader in the field of technical equipment and equipment (100%) in Indianapolis. The organization employs doctors and medium-level healthcare personnel of high qualification. Having carried out a comparative analysis of the marketing compound used in the organization and its competitor can conclude that both organizations provide a broad range of healthcare organization and have their production bases. The company is located in Indianapolis Cooperates with other service companies there is one specialized ultrasound machine in the city of Indianapolis, there are no branches in other cities (Upson et al., 2012).
Thus, having carried out a comparative analysis of the strengths and weaknesses of the competitors of the organization, we can draw the following conclusions: Each of the healthcare organizations has a positive reputation, high corporate culture, and high-tech and professional healthcare equipment. In the target structure, there are unique materials and developments for conducting the scientific activity.
2. The organizations employ doctors of the highest and first qualifications, candidates. In it, foreign doctors work, and healthcare personnel has the opportunity to study abroad.
3. Equity share: 100% equity in the organization and 60% of own funds and 40% of borrowed funds in other organizations have a positive credit history and periodically applied for a loan.
The main competitive advantages of the organization include flexible cost and prices for the organization offered; uniqueness of group, their high quality and service provision; sophisticated service of the market segment; ahead of competitors due to a more mobile management system. Free competition in the market of a healthcare organization is achieved if two essential conditions are met: a comprehensive healthcare service is rendered practically by any healthcare organization; there are a large number of health care providers in a particular territory. Features of the assessment of the competitiveness of health organization: the object of evaluation is the activity of a health care organization that provides healthcare team; the assessment of healthcare organization is related to the assessment of the quality of the process and the technology of service; the evaluation of the activities of health workers directly by the consumer; assessment of time characteristics of the provision of healthcare organization; assessment of the provided service in accordance with the quality of service standards (conditions and service culture); evaluation and integration of subjective opinions of patients who received a single healthcare service (McGowan, et al. 2004).
Opponents of this approach argue that competition between health care providers will not allow the provision of quality healthcare care while maintaining prices at a reasonable level. In their view, competition often encourages the creation of excess capacity and duplication of the organization, which can lead to the spread of the practice of imposing structure by suppliers. The main reason for the problems described above, in the opinion of opponents of competition in the field of health care, is that some of the main mechanisms by which competition in the usual market conditions contributes to positive dynamics do not work in the health sector. For example, consumers of health organization are deprived of the opportunity to choose a suitable service provider, given the quality of their work, since they do not have all the information available to health care providers. In such a market, competition will not improve the quality of service.
McGowan, J. J., Overhage, J. M., Barnes, M., & McDonald, C. J. (2004). Indianapolis I3: the third generation Integrated Advanced Information Management Systems. Journal of the Medical Library Association : JMLA, 92(2), 179–87. Retrieved from http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=385298&tool=pmcentrez&rendertype=abstract
France, G., Taroni, F., & Donatini, A. (2005). The Italian health-care system. Health Economics, 14(SUPPL. 1). https://doi.org/10.1002/hec.1035
Wijngaarden, J. D. H. Van, Scholten, G. R. M., & Wijk, K. P. Van. (2012). Strategic analysis for health care organizations : the suitability of the SWOT-analysis. International Journal of Health Planning and Management, 27(July 2015), 34–49. https://doi.org/10.1002/hpm
Upson, J. W., Ketchen, D. J., Connelly, B. L., & Ranft, A. L. (2012). Competitor analysis and foothold moves. Academy of Management Journal, 55(1), 93–110. https://doi.org/10.5465/amj.2008.0330