So, to create long-term value, a health care organization has to choose Porter’s second option: differentiating itself from competitors. But this strategy entails its own challenges. Only a few organizations have any kind of proprietary technology or assets. Only the largest and best-known have any kind of sustainable brand or market position.
What a health-care company can do, of course, is differentiate itself on service quality. This is an approach taken by organizations ranging from local nursing homes to world-class medical centers. “Every life deserves world-class care,” advertises the Cleveland Clinic. “Excellence every day,” boasts the Massachusetts General Hospital.