Question

1. Identify some switching costs in healthcare. What could a healthcare organization do to minimize the impact of switching costs?

2 What are the major substitutes for hospital care? How do these substitutes vary by hospital service?

3 Are insurance companies buyers or suppliers for hospitals? What about physicians? Why is this designation more difficult to make in healthcare?

4.How does product differentiation affect the level of rivalry in a market?

5.How can driving forces be used to envision the future?

Answer 1

1.switching cost in healthcare settings

• Equipment cost
• Installation and start up cost
• Financial risk
• Service charge
• Remuneration for the employees
• Equipment maintanence cost
• Accreditation charges
• Rising material cost
• Electricity
• Increments for staffs
• Insurance services

How to reduce :

• low cost high quality health care
• young and healthier employees
• Good quality equipment
• Periodical checking of services and equipment
• Better health insurance and health plan choices
• Detailed plan and maintenance of organizational cost.

2.SUBSTITUTES FOR HOSPITAL CARE

• Home care (offering health care services at home)
• Private nursing homes
• Primary prevention at community level
• Community health services
• General practitioner bed