INTRODUCTION
Healthcare charges are based on what type of care are provided and can differ from patient to patient for the same service depending on any complications or different treatment provided due to the patient’s health. These charges represent the standard charges for procedures and diagnosis-related groups.
Competitive pricing evaluation is not at all about price matching and undercutting competitor prices. It is setting the price of a service based on what the competitor’s are charging. It is much more than just possessing an overall idea of the prices charged by competitors for services. It is also essential to have a strong knowledge of the trends in which services prices have been increased or lowered by them.
Considering the above facts, Hospaccx team participates in Competitor’s price evaluation for healthcare. This is macroficial study of Competitor’s price evaluation for healthcare if you want to get into more detail you can contact hospaccxconsulting.com
WHY TO EVALUATE THE COMPETITOR’S PRICE?
- The success of a healthcare organisation is contingent upon the performance of healthcare professionals.
- It is also determined by a solid understanding of the charges of the healthcare organisations.
- Owners and managers look at everything from opposing competitor’s professional salaries, service charges- surgeries, bed charges, diagnostic charges averages when sizing up the competition.
- These are indicators of healthcare organisation’s strengths and weaknesses, and this information allows owners or managers to develop strategies for pricing.
- The same is true regarding the success of any business.
- To be a leader in the marketplace, one have to understand key players in order to develop strategies that will allow one to stand out and become the preferred choice for the service.
HOW TO ANALYSE THE COMPETITOR’S PRICE?
Here are six ways data and analytics for a healthcare price:
1. Understand the new healthcare reality:
There are components within the new healthcare reality:
(1) Changing the delivery model to population-based planning
(2) Moving from volume to value through evidence-based medicine
(3) Changing or differences in prices.
2. Collect competitor’s healthcare services price data:
Healthcares’ strategic decision-making is hampered by data. Data to be collect by visiting the nearby healthcare organisations via- questionnaires, interviews or by collecting the tariff sheets from the respective healthcare organisations. Healthcare organisation need data – both proprietary data and publicly available data – and create an integrated platform.
3. Understand your healthcare organisation’s price compared to others:
If the prices are low or high or it is equal to the competitor’s price so the necessary changes can be done.
4. Identify ways to improve:
There are two ways to improve – through internal opportunities and market dynamics.
Internal Opportunity-There are two facets to this strategy: creating value and reducing costs. Armed with data, such as physician-by-physician cost of case, hospitals can identify the best ways to improve performance and price.
Market Dynamics– is an environmental and market assessment, which includes elements such as an overview of the service area and its demographics, competitive analysis, medical staff analysis, hospital analysis, hospital utilization patterns, population diseases pattern or load and financial trends.
5. Understand the relationship between internal performance and market dynamics:
Internal Opportunity and market dynamics can help to illustrate how analytics can form strategy to improve that healthcare organisations scenarios in terms of prices.
Therefore, being able to look at multiple market and patient dynamics and their relation to each other is vital to survival.
6. Foster a change:
There are three cultural styles in healthcare organisations. One is constructive, another is passive and the third is aggressive. A constructive style is the best fit for analytics, as this culture is linked to better execution of strategy, improved quality, engagement, retention, satisfaction, teamwork and positive financial results.
IMPORTANCE OF COMPETITOR’S PRICE EVALUATION
1. It helps you create awareness:
It pushes to find ways to stand out and become a leading authority in the field.
2. It helps you develop self-awareness:
Watching the competitor’s price teaches to assess the healthcare organisations strengths and weaknesses so that one can create more finance value and better service for the patients.
3. It leads to mutual learning:
Healthcare organisation will probably learn more about the market, customers, and trends. The knowledge and resources they have may be both better and different. Learn how other manage, and then adopt the practices that work best for healthcare organisation.
4. It can help to develop a niche:
To build a profitable healthcare organisation, focus the efforts on conquering a smaller segment of the market. By narrowing the niche, one can develop a competitive edge that deters further competition.
CHALLENGES FOR COMPETITOR’S PRICE EVALUATION
1. Inadequate data on value
Good data is important for designing and optimizing value-based care; unfortunately, there’s very little of it available. In the absence of meaningful data on costs, value-focused work has generally gone undetected and thus unrewarded.
2. Shifting from volume- to value-based reimbursement
The move from volume- to value-based reimbursement is inevitable. For now, it’s a matter of how quickly providers should make it. Move too fast, and healthcare organisations risk losing revenue and implementing a strategy the market does not support. Move too slow, and they may lose partnership opportunities, experience and time that could have been spent modifying clinicians’ behaviours and transforming practices.
CONCLUSIONS
Incorrect pricing can cost healthcare organisations in recurring revenue each year. Comparing the price with the competitor’s price is the most successful aspects to build the strategy that is right for healthcare organisation. Hence, competitor’s price evaluation helps healthcare organisation to achieve customer satisfaction and financial stability.
Are you planning to conduct competitor’s price evaluation for your healthcare organisation? We can help you with our competitor’s evaluation services, below are services that we offer:
- Competitor Analysis
- Packaging / Repackaging of services
- Analysis of patient feedback
It is the superficial and macro level study for more details kindly contact Hospaccx Healthcare business consulting Pvt. ltd on hospaccx.india@gmail.com
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