Conclusion

Abstract

Porter’s generic strategies are applicable and viable in hospital settings in their pure and hybrid forms. Both differentiation and low cost leadership can be equally chosen by hospitals’ executive managers as strategies for the development of sustainable competitive advantage. There is invariably a significant correlation between the types of strategies used and quality of care measured by the patient’s experience score and the ability to sustain patient’s loyalty. To that end, what is needed is a “trade on” strategic plan with emphasis on service differentiation, cost reduction and value creation. A trade on strategy can mitigate the rigidity in a given healthcare system, the volatility in its environment and the constraints in the payer mix when present.