LEAN HEALTH CARE
Demand for health care services is driven by demographics and advances in medical care and technology. The profitability of individual companies depends on efficient operations and, in the case of many non-profit health care providers, obtaining grants and government funds. Large companies have advantages in accessing the latest medical research, buying supplies, offering a wide range of services, and negotiating contracts with health insurers. Small institutions can compete successfully by serving a limited geographical area, offering specialised services, or building a local reputation for quality care. The sector is highly fragmented: the top 50 organisations generate roughly 15% of revenue.
