Question

A PEST analysis of the healthcare industry shows how the system works and the change in the future (Frue, 2018). The healthcare industry depends on legislation, changes in economic rates, and technological advancements (Frue, 2018). People begin to worry when there are changes in government and it’s important companies like mine are aware of changes in healthcare (Frue, 2018).

Political factors; Government Subsidies the healthcare industry is impacted by insurance mandates, tax legislation changes, and consumer protection (Frue, 2018). With my chosen company Independence at Home funds are issued from the State because it’s a government program. Government spending for healthcare can be affected by tax policy changes (Frue, 2018). However, allowing for increased subsidies can be a benefit or it can cause concerns (Frue, 2018). Governmental changes can affect the public and the healthcare services they’re entitled to, especially with changing healthcare bills and plans (Frue, 2018).

Economic Factors Loss of Services, healthcare organizations will be affected by many economic factors, especially inflation, unemployment, and interest rates (Frue, 2018). If there is a change to any of those it can change how the public is able to spend their money, impacting policy spending (Frue, 2018). Companies who manufacture medical devices won’t have many people able to pay their rate if unemployment rate is increased (Frue, 2018). This would mean if less people are able to work, they won’t qualify for work benefits, including healthcare (Frue, 2018). People without these benefits are likely not able to pay the entire cost of any hospital or emergency room visit (Frue, 2018). They’re less likely to seek help when they become ill (Frue, 2018). The public will have a limited selected of health services they can afford (Frue, 2018). My company with our different programs can help older adults with healthcare services healthcare insurance.

Social factors change in beliefs, healthcare relies on understanding the changes in demographics and public values (Frue, 2018). There are communities that share fears, beliefs, and cultural norms (Frue, 2018). If a healthcare professional or hospital is not aware of these conditions while they treat that public, it can cause problems (Frue, 2018). Medical professionals need to stay on their toes about new trends (Frue, 2018). An example would be the use of essential oils as a cure for various illnesses including cases of flu, fevers and even incurable conditions like autism are on the rise (Frue, 2018). Now people have become more health conscious (Frue, 2018). Some business across the country must now post calorie amount of each item on their menu, giving people the option to choose what to eat based on these numbers (Frue, 2018).

Technological factors in the healthcare industry is seeing positive changes in treatments because of technological advancements (Frue, 2018). Developments with medical devices allow patients to receive better care (Frue, 2018). An example is hearing aid devices have the tools to enhance performance, providing crystal clear sound, less background noise, and premium options for a better hearing experience (Frue, 2018). My chosen company Independence at Home is now exploring sending text messages, emails and app developments for clients and care managers to interact with clients for a better service. More business is using apps to connect doctors with patients right in their homes (Frue, 2018). The healthcare industry is heading towards a positive direction for patient care because of our ever-evolving technology (Frue, 2018).

For Chegg: Please provide feedback to the above post and ask question if needed. The student was advised to Discuss the PEST technique with respect to at least one each of the political, economic, social, and technical factors. Explain how this knowledge could be used in the strategic planning process within a company.

Answer 1

Given Data: A PEST analysis of the healthcare industry shows how the system works and the change in the future .

• Yes, PEST technique is very useful method to analyse the external environment for health care industry or any other industry. These factors helps the company to form strategies which helps them achieve their organization mission and goals. PEST include factors like political, economical, social and technological. Each factors has its own effects which can be threat to the healthcare industry or provide the opportunity to them.
• Political environment factor involves the government laws, Tax laws, Consumer laws, Insurance laws etc.. which are mandated to follow by them. High taxes can affect the prices of the services provided to patients and low taxes can reduces the prices of the services to patient, also all the health care organizations are mandated to protect their customers from any kind of fraud and mishap.
• Economic Environment factor relates to inflation,unemployment, low purchasing power in which patient having low purchasing power would not get good quality service and healthcare organization may suffer loss as there are not enough patient or customers with good purchasing power and also unemployed.
• Technological factor is the element which is proved to be as opportunity because many healthcare organization or other firms using technology like EMR/EHR, management information system etc to improve the efficiency of work and improve the performance of staff.
• These factors can help the organization to make strategic planning process. For example - a healthcare organization wants to open a facility in other country then they can use these factors like employment rate of that country, technological advancement of that country and government laws and regulations of that country to open that facility.