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    business principles in health care

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    Using some internet resources and additional research (at least 2 additional resources) on the topics presented:
    a. Share ideas about the role of competition and marketing in health care. Do business principles apply to health care?
    b. Has competition reduced price / will it reduce price in the future?
    c. Without making all health care self-pay, how can education be provided the public about the true cost of care?
    d. Is over consumption of health care part of the problem? How do we assist the public in taking more responsibility for health care which does not require intervention from a provider?
    e. Why do we pay athletics $10 million a year but continue to balk at paying a physician who has invested 11-15 years into preparing for the profession?

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    Solution Preview

    The attached document provides some solutions and answers to the above questions, with references.

    Business principles do apply in health care marketing and competition, as much as they apply in
    any other industry. If there are not ethical standards in health care marketing, it can be argued that the
    organization will not adopt or encourage policies for other staff, that are ethical. This can be
    detrimental to the health care organization, as it may be setting itself up for legal action, loss of revenue
    due to a poor business reputation or may stand to lose funding from donors or partners.
    Marketing should focus on the services the health care organization provides and should also
    focus on the organization's core competencies, or those aspects of health care that it does a good job in
    providing. Core competencies for some organizations may mean diagnosing and treating cardiac
    diseases before they get out of hand and even more costly, or it may mean an organization has
    developed a prevention program for a specific health care issue that is highly effective. By focusing on
    what the organization does well, rather than focusing on controlling costs, by limiting services,
    competition among HMOs and PPOs or payors will increase. "What we have now is dysfunctional,
    zero-sum competition serving to limit, even reduce value for patients. And they see all this taking place"
    (Porter & Teisberg, 2006). Each payor will find something attractive about the specific competencies
    the health care organization provides. The PPO or HMO may be able to increase enrollment, while also
    keeping costs down, by identifying those organizations that do a good job in areas of prevention and
    treatment. Ethics in marketing health care means following through on a commitment to provide the
    best possible care, by using standard measures, rather than ratings of payors.
    There is evidence that competition does drive prices down. However, in many medical
    specialties, there is little competition, particularly related to ...

    Solution Summary

    The solution discusses the business principles that apply to health care.