Monday, July 28, 2008

How can general hospitals compete with specialty hospitals?

In the past, we have blogged about the competition between General Acute Care Hosptials and Specialty Hospitals, (Hospitals trying to make the rules so their rivals won't). Speciality hospitals not only "cherry pick" the most profitable patients (insured patients, simple care), but give physicians an ownership stake so that they will refer patients there.

Now McKinsey has some advice on how General Hospitals can fight back.
  • trying to be all things to all patients is no longer a viable strategy.
  • organize by service line, focusing on building world-class capabilities in just a few clinical areas.
  • Choosing the right service lines to emphasize requires a superior understanding of a hospital’s economics and competitive environment.
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