What Is Competitive Advantage in Healthcare Management?

Competitive advantage is a business strategy where companies find ways to differentiate themselves from their competitors in effort to attract more business. Service-based industries, such as health care, use competitive advantage strategies to gain an elevated position in the field.

Strategy

The health care industry is competitive. Doctors compete for patients and hospitals compete for funding. The ultimate goal is to attract customers and make a profit. With all the industry competition, health care professionals are looking for ways to enhance their competition and give themselves a leading edge.

Services

Health care entities can gain competitive advantage based on the services they provide. Faster services, such as same-day results for lab work or X-rays, are appealing to patients. Offering free consultations is another way to gain patient popularity.

Cost

One way health care companies achieve competitive advantage is by lowering the price of their services. If patients can save money and still receive the same level of care, then they will be more inclined to do business with the organization that is giving them a financial break.

Workforce

Health care companies are competitive about the medical professionals who work for them. A hospital that employees a world renowned surgeon, for example, may have the competitive advantage due to the talent and expertise they can offer patients.

References

• Investopedia: Competitive Advantage Definition
• Entrepreneur: An Exploratory Study of Healthcare Strategic Planning in Two Metropolitan Areas

Resources

• Read this Article in Spanish