Emanuel Medical Center: Crisis in the Health Care Industry - Case Study Example

As can be noted from a critical analysis of the case study, there have been some changes such as reduction in reimbursements for services from health maintenance organisations (HMO) and government programmes thereby pushing up EMC’s operation costs, hence the need for it to follow an adaptive course of action so as to be better positioned to acclimatise to the current state of affairs in the health sector. Being a reputable institution, one viable alternative for EMC to turn around its fortunes is to embark on a drive that is earmarked for market entry.

It should venture in new offerings in the market such as specialised services like cardiology services, heart catheterization as well as surgery. There is need to diversify its operations rather than continue focusing on the conventional services that are offered by virtually all health care facilities whereas other hospitals have a wide range of services offered. As shown in Appendix 1, Ansoff’s matrix suggests that diversification is one viable option in a competitive environment. In order to survive in a business environment, Porter in his competitive strategy suggests that an organisation ought to have competitive advantage other the others which can be in form of cost leadership or differentiation.

Cost leadership is a viable alternative for EMC as far as its long term survival is concerned. Appendix 2 illustrates this. In cost leadership, a firm seeks to spend less on operational costs while at the same time attracting more customers through offering valuable products and services. It is recommended that EMC should adopt an adaptive strategy in order to ensure its continual survival in the health care sector that is characterised by various inevitable changes that affect the operations of the hospitals.

This adaptive strategy will enable the medical center to keep pace with all the