M. D. Anderson Cancer Center Competition
Now Viewing M. D. Anderson Cancer Center's competition in: Hospitals (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the hospital compete with any new physician-owned specialty hospitals? - Hospitals are concerned that the physician-owned specialty facilities will steal many profitable patients.
Does the company contract with major healthcare insurers? - Private insurers typically provide 30 to 40 percent of revenues.
Does a large amount of revenue come through just a few third-party payers? - Many hospitals depend highly on one insurance provider.
How does the company attract and approve doctor affiliations? - Some companies have special marketing programs.
What other hospitals, clinics, outpatient surgery centers, or diagnostic labs compete in the same area? - Independent clinics that provide specialized services, such as lab services, outpatient surgery, or imaging services like CAT scans, often deliver superior service at lower cost.
Has the company considered alternative medicine services such as acupuncture? - Some hospitals have alternative or complementary medicine centers.
Competitive Landscape
Demand for hospital services is driven by demographics and advances in medical care and technology. The profitability of individual companies depends on efficient operations, since many hospitals offer similar services. Large companies have advantages in buying supplies, sharing best practices, and negotiating contracts with health insurers. Large hospitals may offer a wider variety of services. Small hospitals can compete successfully by serving a limited geographical area or offering specialized services. Hospitals are labor-intensive: annual revenue per employee is close to $100,000.
Business Challenges
CRITICAL ISSUES
Rapidly Rising Hospital Costs - Due to advances in medical knowledge and shortages of trained personnel, costs to provide good medical care have increased rapidly. Total spending for hospital services in the US increased at annual rates above 8 percent in recent years. Costs rise both because new medical equipment is expensive and because hospitals remain labor-intensive.
Vulnerable to Increased Government Regulation - The hospital industry is subject to numerous government regulations that specify operating and accounting procedures, essentially mandating certain costs. Through Medicare and Medicaid programs, which jointly provide nearly 60 percent of hospital revenues, the government largely determines industry profitability. Hospitals have little choice but to accept these payments because insurers control access to such large numbers of patients. Rising costs have made healthcare a political issue with uncertain future developments.
Industries Where M. D. Anderson Cancer Center Competes
- Health Care
- Health Care Services
- Hospitals(primary)
- Health Care Services
- Pharmaceuticals
- Biotechnology
- Biotechnology Research Services
- Biotechnology
