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...the ability to force health care organizations to compete for business by lowering their costs of services provided; this competition takes place among hospitals, physicians and health plans. Physicians may compete for patients who are able to pay for services and do not have health insurance, or for patients who have their expenditures paid for by third-party insurers. Physicians also compete on a non-price basis for location, colleagues’ referrals, and reputation. It is essential to compete for both the patient population and for non-tangible assets, as well.
The health care industry is undergoing a rapid transformation to meet the needs and demands of its patient population. Employers and managed care organizations are demanding better service and higher quality care, while providers are trying to deal with reimbursement cutbacks and serving a diverse population.
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