kfederln's blog for Tenet Healthcare

In Chapter 5 we looked at business-level strategy to create and sustain competitive advantage. Using Porter’s three generic strategies to increase chances to outperform rivals, Tenet has addressed overall cost leadership by managing relationships throughout its value chain. In the hospital services sector, billing and revenue cycle management, IT, and housekeeping are performed by separate companies while maintaining in-house staffing. It has a global business center which manages nonclinical activities from the Philippines. Tenet provides differentiation via its numerous ambulatory surgery centers and surgical hospitals. Its focus strategy depends on divestiture of underperforming hospitals and withdrawal from underperforming markets. Through Tenet’s success in achieving these generic strategies has positioned it to withstand Porter’s five forces in the healthcare industry. To sustain a combination of these generic strategies will always be challenging, as focus on revenue cycle, ambulatory care, and hospital services will require ongoing balancing. Tenet continuously considers its positions and life cycles in every market to make strategic decisions. It is then able to either reposition its competitiveness by adjusting its services, improving offerings, or withdrawal from the market.