Wednesday, February 12, 2014

An Important Healthcare Market Research Analysis

By Eula Nichols


Most health policies try to give more attention on how to make use of mechanisms owned by private sectors to help realize the goals of public heath institutions. Healthcare market research experts have to come up with a powerful framework that can help to study health organizations, industries and firms with ease. The actual concept is to try to analyze organizations, not only in terms of competition but also in terms of service distribution and supply.

It is important to note that most policymakers will always rely on the incentives of private institutions to realize the goals of the public sectors. This makes the analysis and understanding of market mechanism an important aspect within all the matters that surround the health care institutions and the people involved. Most of the analysis in this case, therefore, focus on inferential matters, collection methods, sampling frames and econometric estimators.

Many experts have actually gained many interests to try to focus on the specific that are empirical. However, two most interesting questions always arise during the whole of this process. The questions actually revolving around identifying the empirical specifics that can be categorized as technical and those that can be referred to as conceptual.

The technical questions tend to give more focus on discrete treatment and quantitative analysis. This is an area of focus, which has grown to capture the attention of many professionals. Essentially, they are the main area of focus of most day-to-day work of a health care establishment.

There are also typical analytic questions about the health markets. Usually, these questions put more effort in helping professionals to find answers about marketplace structure. However, to understand this concern in the right manner, professionals analyze firms individually and in aggregate. Here, issues revolving around cost, quality and profit becomes matters of major concerns for professional researcher.

Researches should try to explain to people who have an interest in understanding the structure of a marketplace that the market can never be exogenous. Instead, the structure of a particular market is based on the results of the decision that a firm is likely to make.As such, some incumbents could merge, go through splits and some end up bankrupt. In addition, firms may come into the marketplace and begin selling substitute goods and sole traders can take the chance to set up their own firms.

A nature of a firm, which provides health related services, can also be indigenous. This means that a firm can make a decision about pursing chain ownership, vertical integration and horizontal merger, franchise distribution and diversification of products. Nonetheless, this is not an easy decision to make because it needs the attention of potential and active competitors.

One of the most important areas where healthcare market research professionals have to put more of their efforts and show a lot of concern is changes in organizational ownership, placement and boundaries. They should not put more focus on issues like prices, cost, quality and profit, as this would mean that they are merely looking into the structure of the organizations as given.




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