Question

Develop a list of 10 barriers to entry for the following healthcare organizations: (a) hospitals; (b) physician practices; (c) nursing homes; (d) insurance companies; (e) pharmaceutical companies. How and why do the barriers to entry vary among these different healthcare groups?

Answer 1

List of the barriers for the following healthcare organization

HOSPITALS

• they have a financial barrier they require a huge investment to start up a hospital.
• right location and availability of their services.
• licensing barrier , getting permission from the government is a big barrier they have a lot of procedures and rules and guidelines to be followed.
• technological barrier, huge investment has to be made in buying new advanced equipment.
• location barrier, availability of the staffs and doctors in that area the location should be feasible for the working staff, doctors, helping staff , availability of proper roads, transport facilities for emergency cases.
• decision making a barrier , as it involves one or more investors decision making is not easy two people have two different opinions.   
• organizational aim barrier, Is the organizations are aiming for profit-making or giving support and free of cost help for the needy, what is the of the organization is it for monetary benefits or providing services for the society.
• consumer barrier, the hospital has to decide consumers whom they targeting for is the top class, middle class, or both middle class and low class. the expense of the hospital services is different it can be bared by all the class of people.   
• specialized service barrier, choosing the specialization of their services is barrier are they going to give all-round health care service or only one health specialization for example specialization in heart care service, kidney care service, cancer care, etc . choosing this is a big issue.   
• functional barrier, the organization has to follow the health and hygiene services no illegal practices. they have to follow some guidelines given by health care authorities. absence of which leads them to legal issues.

PHYSICIANS PRACTICES

financial barrier, their investment is low but have according to services they want to offer their investment depends on them.

Licensing barrier, even they require a license and permission to start their services. they are to professionally qualify to start their services without qualification they are not allowed to function.

Technological barrier,  they require less technology. only the basic and necessary technology required.

location barrier, availability of a suitable location for practicing. if the place has already a well-known practitioner it will be very difficult for patients and services.

decision making, the decision making is also becoming a barrier whether he wants to practice alone or he wants to open his own clinic.

so likewise different health organizations have the same barriers but the factors are different in each organization. so the main barrier is finance, location, license, consumers, specialization, technology, decision making, organizational aim, consumers so getting in these industries require high expertise.

pharma companies these companies have huge financial barriers, huge investment is required.

research barrier, they have to do lots of research and development before developing a product,

license approval, it's not easy to get license for pharma companies.

location barrier, they require big locations and properties carry on their organizations.

market barrier, creating their brand and having a market for their products a lot of obstacles their drug has to be accepted.

advertisement barrier,r they require a lot of advertisements for their drugs, free samples have to be given to check the performance of drugs. for these, they require marketing experts for their products.

competition barrier, these industries have huge competition barriers. they are so many drugs available in the market. it is very difficult to accept their new drugs by the consumers in the market so they need to create a brand image and give competitive products.

Failure of drug response , If the drug doesn't show the effectiveness their product will not be advisable by the doctors the demands fall due to the ineffectiveness of drugs on the patient's health condition. hence their product production is cancelled by the health authorities. indirectly their will be a loss of investment spend on research, production , marketing advertisement, etc.