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Sample Paper on Competition in Healthcare

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Sample Paper on Competition in Healthcare

Health systems across the globe encounter similar challenges, which include adequate access to health care services, improving on quality, and cutting on costs. In a health competition, improvements in healthcare processes and methods tend to bring down costs, as health care providers invest on innovations that bring better outcomes. For example, competition becomes beneficial when it reduces insurance premiums (Greenberg, 2012). It allows consumers to have numerous choices of health care plans, as firms endeavor to improve on access of the existing plans. Although there is no consensus on how much competition is suitable in healthcare, competition is beneficial to patients because it assists in minimizing costs, enhances quality, as well as encourages innovation.

Competition in healthcare benefits patients through cutting on costs, in addition to enhancing access to a variety of services, which in turn assist in improving on quality. Competition encourages efficient allocation of resources, which help in meeting patient needs (Greenberg, 2012). Competition enables hospitals to expand their services, as they do not compete in all the services that they offer. For instance, a heart attack patient does not choose the facility that he/she prefers to be taken to, although the level of mortality in heart attack is quite low in hospitals that offer such service (Gaynor & Town, 2011). 

On the contrary, competition can become a hazard to patients if the healthcare providers compete on the wrong levels. According to Porter and Teisberg (2004), competition should not occur on the health plans stage, networks level, or in hospital groups. Instead, it should only take place in the prevention, identification of disease, or in the treatment level. In most cases, competition is normally absent at the stage where individual health conditions are evaluated. In addition, competition in healthcare hardly reduces inequalities in provision of services, as hospitals are usually concerned with patients who are insured, leaving uninsured patients to suffer from poor services.

















Gaynor, M., & Town, R. J. (2011). Competition in Health Care Markets. National Bureau of Economic Research, NBER Working Paper Series.

Greenberg, Warren. The Health Care Marketplace. New York: Springer, 2012. Internet resource.

Porter, M. E., & Teisberg, E. (2004). Redefining Competition in Health Care. Harvard Business Review, Health.

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