WEEK 5 Discussion – IMPLICATIONS OF HEALTH

WEEK 5 Discussion – IMPLICATIONS OF HEALTH

WEEK 5 Discussion – IMPLICATIONS OF HEALTH 150 150 Peter

WEEK 5 Discussion – IMPLICATIONS OF HEALTH

From the Discussion Preparation, analyze at least two primary economic assumptions and examine their short- and long-term impact on promoting the competitive market model in the health care environment. Evaluate the fundamental reasons why price and utilization economic factors in the health care setting influence competitive market status in regard to supply and demand for health care services. Provide at least one example of such factors to support your response.

Sample Paper

A significant element of the model is the organization’s strategic mission and goals. The mission or goal of an organization provides a general direction regarding quality of health and costs that reflects the overall organizational internal environment. An industry’s external environment, of which competition is a major driver, influences the strategic direction of the organizations within the industry. The mission defines what an organization can do in terms of quality and costs and articulates the basic values and principles that guide how services are delivered. For example, some hospitals build their reputation on the principles of quality, cooperation, compassion and innovation as the primary drivers and not necessarily cost(Cleveland Hospital). If every US resident had an insurmountable amount of money to spend on health care, then health care costs would not be a problem. Every consumer of health care will not desire to shop around for price alone, but will want to shop for many things such as quality and customer service. On the other hand, many patients will want the best care for the lowest cost. In the current health care environment, this is rarely found. Patients must make a decision and unfortunately sacrifice one for the other. Therefore, the mission and goals and the financial support institutions have, allow them to attract the best medical doctors, nurses, support staff, acquire the most updated and the newest equipment and technology and attract patients. In connecting competition to the organization’s strategic mission and goals and ultimately to patient satisfaction requires a model that defines the role competition in a way that what the customer expects in terms of needs and wants is factored into health care design, communication, pricing and the delivery of appropriate, competitively viable health care services.