Competitive Strategy Analysis for Healthcare Industry in Taiwan

碩士 === 國立臺灣大學 === 高階公共管理組 === 95 === Healthcare is the most important issue in developed countries worldwide. However, every country adapts different strategies to satisfy its needs to maintain the health of the population. Prior to 2004, Taiwanese medical laws required all the major hospitals to b...

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Bibliographic Details
Main Authors: Shih-Shiuh Yang, 楊適旭
Other Authors: Neng Pai Lin
Format: Others
Language:zh-TW
Published: 2007
Online Access:http://ndltd.ncl.edu.tw/handle/59962132332484475648
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Summary:碩士 === 國立臺灣大學 === 高階公共管理組 === 95 === Healthcare is the most important issue in developed countries worldwide. However, every country adapts different strategies to satisfy its needs to maintain the health of the population. Prior to 2004, Taiwanese medical laws required all the major hospitals to be non-for-profit organizations. And the laws had been revised in 2004. The new medical laws allow different kinds of organizations to participate in healthcare service industry. However, it still excludes any commercial company as the sole owner of any hospital. This means that the capital of private or public company in Taiwan can not invest in hospitals. Meanwhile, medical laws require all the Taiwan people to join in the National Health Insurance Plan. As a summary, Taiwan medical system looks very similar to socialism countries. Taiwan’s government has been acting vigorously in find out the way to finance its National Health Insurance Plan and to adjust new system to keep plan continued. On the other hand, because the system is changed frequently, hospital operators can only face the new industrial structure changes. They have been trying their best to adopt different strategies. This thesis is intent to analyze the different competitive strategies adapted by Taiwanese hospitals. I want to explain how hospitals manage their outside environments and to predict future possible change of healthcare service industry in Taiwan. According to our research findings, we can conclude the followings: First, hospital industry in Taiwan is facing one single buyer, the National Health Insurance Bureau (NHIB) which causes very serious financial loss for some Area Hospitals. To keep these hospitals from closing, the National Health Insurance Bureau adopts different policies from the “Payment by Patient Numbers” or the “Payment by Diseases” to other quality performance index and allow hospitals to have more choices for their survive strategies. The limitation of free competition for healthcare industry in Taiwan, although reduce information asymmetry between physicians and patients, is helpless to improve the whole investment environment of the healthcare industry. Furthermore, proper referral system in healthcare still can not be created. Second, most people in Taiwan are satisfied with the current healthcare system, but also strongly question that whether the national health care system can improve the efficiency for them in seeking medical advice. People also question if the National Health Insurance Plan can run continuously. In the long run, Taiwanese believe that serious loss will eventually cause medical service quality drop in the future. Third, large hospitals are losing their outpatient market share from 10% to 8% because NHIB changed its payment structure. Patients like to enjoy high quality service but do not like to pay more for service in large hospitals. Mostly likely in the future, patients will use more outpatient clinics near their communities.