Determinants of market share for a hospital's services

Area of Science:

• Health Services Research
• Healthcare Management
• Market Analysis

Background:

• Understanding factors influencing hospital market share is crucial for strategic planning and resource allocation.
• Previous research has explored various determinants of hospital competitiveness, but a comprehensive analysis of controllable factors is needed.

Purpose of the Study:

• To identify and analyze controllable factors impacting individual hospital market share within a defined geographic area.
• To quantify the influence of physician affiliations, hospital location, and other key variables on hospital patient share.

Main Methods:

• Utilized the Multiplicative Competitive Interaction (MCI) model to assess hospital market share.
• Analyzed the statistical significance of variables including physician affiliations, hospital location, a composite PROFILE factor, and physician non-affiliation rates.

Main Results:

• The number of physician affiliations demonstrated a statistically significant impact on hospital patient share.
• Hospital location, the PROFILE factor, and the proportion of exclusively affiliated physicians also significantly influenced market share.
• The examined variables collectively explained 90.1% of the variance in individual hospital patient market share (R² = 0.901).

Conclusions:

• Controllable hospital attributes, particularly physician affiliation strategies and strategic location, are primary determinants of market share.
• The findings provide actionable insights for hospitals seeking to enhance their competitive position and patient acquisition.