1. Healthcare has become an increasingly competitive market. Is competition good or bad for the healthcare industry? How has this competition impacted the delivery of healthcare to the patient? Please give examples. 2 pages
2 .Prepare and submit a written 3-5 page analysis of Case – Salix Pharmaceutical
Expert Solution Preview
As a medical professor, I aim to provide insightful knowledge to the medical college students to prepare them for the competitive healthcare market. In this context, the following questions have been answered towards a better understanding of the healthcare industry.
1. Is competition good or bad for the healthcare industry? How has this competition impacted the delivery of healthcare to the patient?
Competition in healthcare can be both good and bad depending on how it is implemented. On one hand, competition can lead to improved quality of care, innovation and cost reduction by creating an environment of efficiency. On the other hand, it can also lead to cut-throat competition, price wars, and reduction in the quality of care.
Competition impacts the delivery of healthcare by incentivizing healthcare systems and providers to improve their services and optimize costs. Value-based healthcare has become the current trend in the healthcare industry, which refers to providing high-quality healthcare services at lower costs. In competition, this value-based care model is the key to success, and many healthcare systems have embraced it to improve their performance.
For instance, the emergence of Urgent Care Centers (UCCs) and Retail clinics has provided patients with faster access to medical care than traditional hospital emergency rooms, resulting in improved patient satisfaction. Another example is the Affordable Care Act, which has been critical in creating a competitive healthcare industry and encouraging value-based care through Medicare’s pay-for-performance programs.
However, there are also negative impacts of competition in healthcare, such as providers competing solely based on price, rather than quality, ultimately impacting patient care. The lack of transparency in pricing mechanisms adds another layer of complexity to this issue, with patients struggling to understand their medical bills.
In conclusion, competition can be beneficial when facilitated effectively, leading to improved quality and accessibility of healthcare services. Nevertheless, healthcare organizations, providers, and policymakers need to ensure that competition does not come at the expense of patients’ quality of care.
2. Prepare and submit a written 3-5 page analysis of Case – Salix Pharmaceuticals
Salix Pharmaceuticals, a specialty pharmaceutical company based in America, was founded in 1990 with a focus on researching gastrointestinal disorders. Salix is best known for its flagship product, Xifaxan, which is used to treat irritable bowel syndrome and other gastrointestinal diseases. The company’s growth was initially driven by acquisitions, but after a setback in 2014, the company’s new CEO, Carolyn Logan, had to implement several strategic initiatives to stabilize and grow the company further.
Some of the initiatives that Carolyn Logan initiated included reorganization of the company, laying off nonessential employees, restructuring of the R&D department and terminating some of the failed products, among others. Additionally, she decided to turn Salix’s traditional selling model into a new approach of partnering with gastroenterologists who would help in recommending Salix’s products to their patients to increase sales.
As a result of these measures, the company has performed well, with its sales peaking at record levels. However, the company’s financial performance in 2015 has been under attack from short-selling investors who claim that the company is engaging in malpractices by inflating sales and revenues.
In conclusion, the Salix Pharmaceuticals case illustrates the importance of having a sound strategy to reposition the company’s focus. Carolyn’s approach to restructuring the company and changing the selling model has proved to be successful, resulting in steady growth for the company despite the initial setback. It is essential to determine what Carolyn has accomplished to understand the success of the company. Nevertheless, it will be helpful if Salix can address the allegations of the short-selling investors to maintain its reputation and stay competitive in the market.