Coopetition Strategy in the Healthcare: Good or Bad?

Abstract

Today, the healthcare system faces three major challenges in delivering healthcare services: (i) shortages of medical equipment, hospitals, and qualified healthcare professionals1,2; (ii) growing overall demand due to a rising population and unforeseen events such as pandemics and natural disasters3-5; and (iii) escalating costs, which hinder affordability6. Traditionally, these challenges are framed as the 'Triple Aim' of healthcare: improving access, affordability, and quality7. Addressing these interconnected issues is essential for creating a more resilient healthcare system. Additionally, the high costs of medical equipment and the need for knowledge-based services, which require skilled staff and significant investments, have driven healthcare organizations to collaborate with their competitors through coopetition 5. Coopetition is the collaboration between business competitors for mutual benefit 8. Coopetition arises when organizations encounter complex challenges that are difficult, to address independently9; particularly when these challenges also affect other entities within the same sector or geographic region. Therefore, competitors cooperate when they see aligned interests, aiming to create more value together than individually. By collaborating on shared obstacles, such as industry-wide regulatory requirements, resource constraints, or technological advancements, organizations can harness collective strengths to devise effective solutions 10,11. This approach enables them to address common issues while maintaining competitive differentiation in other areas. This value comes from a larger customer market, shared resources and knowledge, cost reductions, and cross-functional teams 12. Coopetition in healthcare can take various forms and be a