Question

PEST Analysis on a nursing home (Fox Run Manor)

Answer 1

Answer: PEST analysis can be a useful tool for healthcare organizations in the midst of strategic planning. A PEST analysis is a framework for healthcare organizations to analyze events and trends in four areas that commonly affect their business operations and performance, specifically:

• Political factors: Government spending for healthcare can be affected by tax policy changes. It can be a benefit, allowing for increased subsidies or it can be a cause for concern.
• Economic factors: Inflation, unemployment interest rates are examples of economic issues that both directly and indirectly influence the financial performance of healthcare organizations. As if less people are able to work, they won’t qualify for work benefits, including healthcare.
• Sociocultural factors: A PEST analysis for healthcare should also identify changes in demographics, values, and beliefs of various consumer groups. or example, 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. Understanding why people are turning to these natural remedies can help healthcare professionals talk and discuss concerns or treatment with these users.
• Technological factors: Developments with medical devices allow patients to receive better care. For example, hearing aid devices have the tools to enhance performance, providing crystal clear sound, less background noise, and premium options for a better hearing experience.