Sustainable competitive strategies

This book is focused on a very successful private hospital group which consists of thirteen acute hospitals in Switzerland. This case study analyses the current strategic position and evaluates sustainable strategies to remain highly competitive also in a more dynamic market. Swiss health care is confronted with fundamental changes. On the one hand, there are increasing costs in patient treatments caused by innovative technology with new high-capacity medical devices. On the other hand, hospitals will have decreasing revenues with the introduction of the new patient classification and tariff system DRG by 2012. Invariably, the implementation of DRGs exerts pressure on hospitals to increase their level of effectiveness and efficiency, to reduce their costs related to patient treatment, and to optimize their health care processes. Due to the higher rivalry in future, hospitals are forced to choose an effective strategic orientation and to develop an appropriate strategy to remain highly competitive. It is argued in this case study that Swiss hospitals will only achieve superior performance, with a position of sustainable competitive advantage, by knowing the crucial capabilities.