Securing competitive advantage can present a significant challenge to any hospital’s management team. Regardless of the market, the objectives are the same: improve strategic position and secure consistent financial performance.

Delivery, i.e., the provision of health care, remains the domain of the provider and an important area—perhaps the only one—where hospitals can secure competitive advantage. Differentiating by delivery involves the pursuit of a quality strategy, which translates to replicating outcomes and to documenting a superior value in clinical performance.

Pulling off the delivery strategy requires significant support from physicians. Consequently, a well-conceived delivery strategy requires a very strong, credible relationship with a hospital’s physicians, who are the ultimate drivers of cost and clinical performance.

MPA re-examines an organization’s capability—from management resources to systems to capital allocation to aligned incentives. It may be an overwhelming task for a full-service hospital to achieve excellence in all service lines. The hospital must choose how it is to compete, re-visit its business definition, and allocate resources accordingly.