MGCR 222 Lecture Notes - Lecture 3: Davita, Switching Barriers, Peer Pressure
5 Feb 2020
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You have to use private insurance for the 12 months before you switch to public. new patients are the ones who subsidies everyone else. 80% of dialysis treatment is paid by the government so you have to figure out some way to negotiate good prices. (buyer power) Supplier power : major operating cost is the labor, hiring nurses and keeping them is important. Rivalry: nature of the competition, how can you differentiate yourself on the product, comparatively to the price. You"re not supposed to differentiate yourself on the treatment, therefore, the switching costs are low, if you need dialysis and you can"t get it at one clinic, you can go to another clinic. Every year, 1/5 of your patients die, even if you"re doing everything correct. If you go into health care, burnout is much stronger in that industry. We cannot just use extrinsic motivators though.
