Competitive Analysis

Scope and nature of the healthcare industry segment

The Hospital Corporation of America mainly consists of hospitals and surgery centers that are located within 20 states in the United States and in the United Kingdom. According to its website, some of the products and services performed by HCA include but are not limited to pharmaceuticals, rehabilitation, internal medicine, surgery care, radiology, laboratory services (HCA, 2016). However, the main activity that the hospital engages in is internal medicine.


According to Hoovers (2016), one of HCA’s Main competitors is the Tenet Healthcare Corporation (THC), whose main strength is the diversification of its services. The company operates specialty hospitals including physician practices, imaging centers, health plans, and a billing and communications company. This enables it to have risk diversification, in that the losses in one revenue stream are offset by the returns in other sources of income. THC was ranked position 140 by the Fortune 500 while HCA was ranked position 63, and it therefore holds an advantage over THC. Another strength possessed by the company is that it can hold a larger number of patients than HCA, and as such, its revenue potential is higher. THC has a total of 80 acute hospitals, a small number when compared to HCA’s 250 hospitals. Another weakness held by THC is the fact that it is only available in 12 U.S. states while HCA can be found in up to 20 branches. As a result, with regards to market outreach, HCA is more superior to THC.

Catholic Health Initiatives (CHI) is another competitor which holds more than 14,000 beds in 20 U.S. states. The hospital’s main strength has to do with sources of capital, as it is owned by the Catholic Church, and its initiatives are therefore funded by several church associations. In this way, the hospital does not have to incur huge profits in order to fund its initiatives. However, the number of hospitals owned by CHI is smaller when compared with HCA, as the former only owns a total of 90 hospitals. As such, HCA holds an advantage with regards to market outreach (Hoovers, 2016).

Key success factors in the hospital industry

For a company to succeed in the healthcare industry, its financial performance has to be impressive, in a manner that ensures that the hospital is able to meet its current obligations, and still have some money left to go towards growth initiatives. Secondly, healthcare organizations have no option but to adopt advanced technology if at all they intend on effectively addressing the needs of the patient populations. New and advanced technology for the diagnosis and treatment of diseases should be implemented so that the healthcare organizations can gain a competitive edge in the market. Thirdly, healthcare organizations should have product diversification and specialization. This way, the financial stability of the healthcare organizations would not be affected if one of its revenue streams incurs losses (Winston & Weinstein, 2016). With regards to the above three factors, HCA showcases better performance when compared to its competitors. THC comes in second, while CHI comes in third. The rankings are based on the hospitals’ revenue generation, implementation of technology, and product diversification.

Market position

Based on the analysis of HCA’s market position, the healthcare organization has a competitive advantage over its rivals. First, its subsidiaries are situated within 20 U.S. states and in the U.K. Secondly, HCA has diversified its product portfolio to include surgery centers. As a result, HCA’s future outlook in the hospital industry is positive due to its sustainability in the market (Johansen & Zhu, 2013).





HCA (2016). HCA at a glance. Retrieved from


Hoovers (2016). HCA Holding Inc., competitors. Retrieved from


Johansen, M., & Zhu, L. (2013). Market competition, political constraint, and managerial practice in public, non-profit, and private American hospitals. Journal of Public Administration Research and Theory, mut029.


Winston, W., & Weinstein, A. (2016). Defining your market: winning strategies for high-tech, industrial, and service firms. Routledge.