Write a detailed Geographic and product market response
How would you define the geographic and product markets of large healthcare organizations such as Mayo Clinic and Johns Hopkins? What are new competitors’ barriers to entry to those markets?
The students response: Both the Mayo Clinic and Johns Hopkins Hospital are two of the highest ranking hospitals in the United States (mayoclinic.org and hopkinsmedicine.org). One could even say these hospitals are world renowned. The Mayo Clinic clinic is based out of Rhochester, Minnesota with subsidiaries throughout the United States. John Hopkins operates in much the same way. The geographic market of these hospitals could be seen as international. These hospitals service the local areas but also much of the United States, as patients and physicians seek them out for solving difficult cases. Also, patients from countries with socialized medicine sometimes seek care at these hospitals when timely care cannot be obtained their country of origin.
Barriers to entry in these markets could be affected by insurance. Today some insurance companies will only agree for payment of services if those services are rendered by the insurance company’s preferred provider. Walmart has an agreement with the Mayo Clinic that requires all insured employees seeking elective hip or knee surgeries to have them performed at the Mayo Clinic. My assumption is that this requirement is based upon patient outcomes. Therefore, local hospitals have a barrier to this market entry and lose local patients to high performing hospitals. One could say that hospitals are now truly competing for patients on a global scale. If all major companies begin to follow the lead of Walmart, many community hospitals will suffer. Standards and outcomes of local hospitals must be improved in order to compete with these major hospitals. The Bible reminds leaders to strive for improvement with the following verse: “As iron sharpens iron, so one person sharpens another” (Proverbs 27:17, The New International Version).
www.Mayoclinic.org, and, www.Hopkinsmedicine.org
Answer preview:
Words:224