Competition among Hospitals for HMO Business Case Study

Competition among Hospitals for HMO Business - Case Study exerciseThe independent variables are an index of relative hospital prices for HMO business in each marketplace (price) high tech-capability teaching status (teaching or no(prenominal)-teaching) ownership status (non-profit, for-profit, or public) and location. To provide answer to the guerrilla research question, that is, to account for the effectuate of the structure of the hospital market on market share, three variables were added no. of hospitals in the market, no. of HMOs in the market, and the HMO penetration rate.For both price and non-price attributes, the regression test pointed to an effect on market share variables. Hospitals with lower prices had a bigger share of HMO business. The more sophisticated a hospital was, the greater the share in the HMO business. Teaching hospitals were more preferred by HMOs than non-teaching ones. On the effect of ownership on average, nonprofit and public hospitals had less mar ket share than for-profit ones.