Reference no: EM132803030

Your employer here is a full-service hospital, one of five in your geographical area of two million people, offering an emergency room, 500 beds, a busy operating theater with several operating rooms and so forth. The hospital is tugged every which way by different stakeholders, all realizing they need the hospital, but many making demands that would make its existence more difficult. Your current threat is from 100 of the very physicians associated with you-they have organized their separate practices in a large, collective clinic and are considering increasing their practice income by jointly investing in a surgical-center where they will do out patient surgeries, while they continue doing the more extensive surgeries in your hospital.

However, these outpatient surgeries have long been a good source of income for you, and without it, your hospital may have trouble making ends meet.

1. Who/what are the stakeholders of a hospital, and what pressures can they bring to bear? What are their positions likely to be?

2. How does this hospital fare in terms of Porter's Five Forces:

a. Threat of entry?

b. Power of suppliers?

c. Power of buyers?

d. Threat of substitutes?

e. Competitive rivalry level?

3. What does the "collectivizing" of the physicians mean in terms of Porter's Five Forces? (same a-e as above)

4. Could the hospital have done anything preventive in this whole situation?

5. What can the hospital do now, in terms of protecting its position?