Hcci Strategy Analysis

Part 1 HCCI strategy Analysis1

Continuous development of the medical service with the help of latest technology, joined with shoddy airfares and a developing worldwide interest for health administration has made a prospering new entrepreneurial division: medical tourism. Many nations are trying to position themselves as an ideal destination to have guests who are eager to make a trip to acquire health administrations that have better-quality, more accessible and convenient service or just purely provide lower cost than in their nations of source.2

The Cayman Islands is a politically stable, English-speaking nation close to the Miami shores, which makes the country as an ideal location to captivate medical vacationer close for Americans. The Cayman Islands – a typical example with other Caribbean countries - would like to broaden their incomes by making an enormous effort in the medical tourism industry. Health City Cayman Islands was created under such economic and social environment, I will analyze the HCCI strategy in mainly three aspects: internal core competency of HCCI, external environment of the business, and the organization and execution of the strategy.

1. Analyze the internal core competency of HCCI

1. Who-what-how Model

WHO:  The customers of HCCI are mainly the patients in the US and the Caribbean. The primary US patients are those who may have problems to afford the expensive medical service in the US, and the Caribbean patients who would like to get quality tertiary care within the area.

WHAT:  The key value proposition of HCCI is to provide high-quality and affordable medical service for US and Caribbean patients. The local American hospital for a US patient is very convenient in terms of distance, and offer good quality service, but fails to deliver in relatively cheaper manure, especially for the patient who is not covered by the insurance. In comparison, the Caribbean patient could enjoy the convenience of the location compared to flying to US to get treatment, at the same time, they benefit from the fare medical quality and lower cost.  At the same time, HCCI also promotes medical tourism by sitting the hospital on the beautiful Cayman Islands and providing service and support for patients to plan the trip.

HOW: In order to achieve affordable medical service, HCCI conducted many cost-reduction initiatives including:  maximizing the operational scale to fully utilize the expensive medical devices, improving the efficiencies in procurement to have better negotiation power with suppliers, and creatively constructing own oxygen generation plant to further reduce the oxygen purchasing cost. They conducted so many cost reducing initiatives mainly minimizing the expense of non-core medical device investment. HCCI recruited many physicians and staff from India whose salary is much lower than the same professional from US. In addition, the improved efficiency of the staff by multi-tasking help to reduce the numbers of staff needed.