Competitive Pricing Strategy and Its Impact on Healthcare: An overview
For healthcare companies to attain a healthy profit margin and ensure quality outcomes, it is essential to connect their pricing strategy with the day-to-day operational concerns. With the rising healthcare market competition, healthcare companies must be cautious while creating and implementing their competitive pricing strategies as overlooking even small factors can cause them to lose out on their competitive advantage. A competitive pricing strategy in healthcare does not necessarily mean a race to the bottom in order to offer the lowest prices. In this blog, experts at Infiniti explain the key factors that enable healthcare organizations to create a robust competitive pricing strategy.
Whether you charge higher or lower prices than your competitors, you must have a value proposition that justifies those prices. Request a free proposal to know how we can help your business identify and set optimum prices for your products and services.
Building a robust competitive pricing strategy in healthcare
Establish market identity
Many healthcare organizations are under the misconception that a pricing strategy has got to do primarily with becoming a low-cost or low-price player. Although some low-acuity services such as imaging may require a low-cost option structure, healthcare systems may continue to provide care at historical rates for other services. Moreover, organizations must also seek to understand what their current market identity is and what they want it to be in the future.
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Proactive process to maintain margins
Healthcare organizations need to proactively review prices in order to isolate and resolve any potential margin issues before risk to revenue or compliance occur. It is vital to emphasize improving key service lines and identifying margin and compliance risks by payer and service lines. Healthcare organizations must also focus on educating their staff on key issues so that charge capture violations can be easily prevented.
Engage in meaningful interactions
Several organizations resort to the practice of using tools to establish their competitive pricing strategy. However, these tools often fail in terms of adjusting to price sensitivity in the market. Although tools prove to be beneficial in building a competitive pricing strategy, it is insufficient to create an overall competitive advantage in the market. While interacting with consumers online, healthcare companies have a unique opportunity to deepen consumer relationships. Providing value messaging, online scheduling, or a live chat option is ways to create meaningful interactions with customers. Furthermore, healthcare organizations can also create a seamless customer experience with flexible payment options as a part of their competitive pricing strategy.
Price transparency to create value
Giving patients a clear idea of what exactly they are being charged is an effective competitive pricing strategy that can induce patient loyalty. Being transparent with prices can also help healthcare organizations to increase their customer base on a larger scale. Ensuring transparency in pricing is one of the best ways to communicate value to customers and increase consumer confidence in the organization.
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