The Competitive Analysis of the Private Hospital Industry Using Porter's Competitive Diamond Model: A Case Study in Kerman 2014

Changes in diseases pattern and increase in demand have necessitated private hospitals’ involvement in the health system. The purpose of this study was to analyze the private hospital industry in order to identify its strengths and weaknesses.
This qualitative study was carried out through phenomenological approach. The study participants consisted of 17 experts and chief managers of private hospitals and were selected through purposive and snowball sampling. Data collection was conducted through semi-structured interviews. The data were analyzed using framework analysis method.
The challenges of the private hospital industry, in the format of Porter’s diamond model, included 4 main themes and 21 minor themes. The most important challenges of private hospitals were shortage of medical equipment and facilities, old hospital building and physical environment, nursing shortage, lack of job security, and poor of management skills. The strengths of private hospitals were patient satisfaction with welfare services, good relationship between healthcare personnel and patients, and observance of the patient rights charter.
Dominance of profit on the private sector's management viewpoint, lack of state financial support, limitations on signing contracts with a variety of supplemental insurances, and poor government monitoring are the major causes of problems in private hospitals. The realization of private-public cooperation in community health improvement can be expected through increased government support and the improvement of the quality and quantity of human, informational, and physical resources.