Entry and Competitive Dynamics in the Healthcare Service Market: Focusing on Medical Institutions and Emergency Medical Facilities

This study proposes an empirical model to analyze the market competition structure of healthcare service market. Utilizing the Entry Model developed from existing literature and applying it to the medical institution industry, this research extends the analysis to measure the impact of government designation on the competition in emergency medical services, where the quality of medical service is constant. The analysis reveals that entry as a medical institution leads to a rapid transition to a perfectly competitive market, and that uncertified emergency medical facilities have a greater impact on entry than certified facilities. Additionally, this study improves statistical fit and offers a framework for identifying areas lacking facilities through estimations at the administrative district level in South Korea. This research not only provides a precise understanding of regional medical supply but also serves as a supplementary material for the market entry strategies of digital healthcare companies and the realization of medical welfare through the establishment of public medical institutions.