, and insurers to reduce hospital stays and to provide services on a less expensive outpatient basis also contributed to the increase in outpatient services.The pressure from government and private programs to reduce costs in the health care industry was intense. Increased cost pressures from groups such as Medicare and Medicaid, lowered the prices that healthcare providers could generally charge, making it more difficult for healthcare providers to remain profitable.Porters Five Forces AnalysisColumbia improves their buying power with suppliers by buying up the competition in the healthcare industry. Medical suppliers operate in an industry characterized by fierce competition and substantial governmental regulation. There are two main suppliers in the healthcare industry; Abbot Laboratories, and Baxter International, Inc. Abbot stands apart as the leading industry supplier, with Baxter as their chief competitor. Abbot is a diversified health care company operating in 130 countries, and has a standing reputation for their highly-centralized operating style and their stick-to-business strategy. Columbia also challenges the power of buyers, and is able to negotiate rates easier.The threat of new entrants is low, because there are a few main competitors that dominate the healthcare industry, including Colmbia, Tenet, and Humana. Availability of substitutes is very low, and poses a minimal threat. Substitutes include free clinics, government owned Universal Health Coverage, and Hospice Care. SWOT AnalysisStrengths:Columbia/HCA has expanded into variuos industry segments, including hospital management, home health care, outpatient surgery centers, and assisted living facilities. Since 1987, the company has established itself as a leader in the healthcare industry, due to mergers and acquisitions.Columbia heavily invested in information systems that would allow them to closely monitor the performance of each of the companys hospitals...
