Kaiser Permanente Swot

SWOT Analysis

Introduction

This section analyzes and breaks down two companies in terms of their strengths, weaknesses, opportunities and potential threats in the health care industry in more details. For example, Kaiser’s strengths include its cooperative spirit among doctors in a tightly organized structure and its approach to preventive care. Unfortunately, they only operate in limited area in the U.S. and depend heavily on payments from Medicare and Medicaid. Their potential growth in the hospice cares area and its overall business could be negatively impacted by the threats of medical reviews and audits by government.

UnitedHealth’s strengths comprise of a diverse product mix that spread over large customer base that allows them to ride over bumps in the economic cycles. The emphasis in expanding the company through mergers and acquisitions should continues to bolster revenues and lead to synergies across business units. However, sales, general and administrative cost are rising and could negatively impact the company. Furthermore, risk from by Unipise, one of UnitedHealth recently acquired profit-losing business unit could hurt the company’s profit margin. The opportunities for expansion to foreign market are possibility. Nevertheless, rising health care cost, and the pressure on pricing continues to be a major threats. Moreover, the complexity of Federal and State law regulations in the U.S could further hinder its growth.

Strengths of Kaiser Foundation Health Plan, Inc

Kaiser Foundation Health Plan is the largest non-profit managed health care company in the US. As a non-for-profit association and describe themselves as an “integrated health care organization”, it has no shareholders to pay and reinvests any money it makes in improving its services. The company has members in nine states and the District of Columbia. The company’s

largest division, the Californian division and six other regions, are comprised of separate but a tightly organized...