Porters Five Forces

Entering to the private Healthcare services market is not easy, as far as

technological and economical issues are concerned. The foundation of a
diagnostic center, and especially a hospital, demands significant investments
and presents various difficulties. Careful planning is demanded, in terms of
the investments expedience and viability. An important part of an investment
in this sector, apart from high technology and specialized personnel which
are essential, would be the cost of land; there are many geographical
diversifications, as the cost of the appropriate land in the appropriate location
inside Attica district is much higher than that in other regions of the country.
Moreover, the sanction and consolidation of reputation of a
therapeutic/diagnostic center makes new entries difficult, since a good
reputation formation is a long-standing process. The institutional framework
itself can suppress new investments. The current prerequisites particularly
financial specifications are considered as severe, while the legal instability
creates insecurity for the future.

The most significant substitutes of private Healthcare at the moment are

primary and secondary public Healthcare services. Along with the general
economic reformation, the government is targeting to the melioration of
public Healthcare infrastructure. More specifically, the operation of two new
hospitals has already begun, old hospital buildings have been renewed, and
more than 200 km2 of infrastructures have been added to various hospitals
of the country. Finally, three medical centers have been arranged to be
constructed through the public and private sector collaboration method.

The main suppliers of Healthcare services organizations are those providing

the necessary medical accoutrements, pharmaceutical organizations and
stores and companies producing and trading food and drink provisions for
hospitals. Big and acknowledged organizations of medical accoutrements
with multiple operations in the demanding private Healthcare environment
are those that maintain the negotiatory advantage toward their competitors.
Relatively to sanitary material suppliers, the negotiatory advantage belongs
to those who strictly abide by all demanded quality control procedures,
whose commodities are accordingly certified (CE, ISO etc.) and approved by
the state, and can guarantee safety in application by patients. The bargaining
power of a Healthcare services organization towards its suppliers depends on
the height of order it makes, and its magnitude and reputation in the market.
Specialized medical, nursing and paramedical personnel is also included in
the sectors suppliers.