Pestle analysis of healthcare industry in usa

Institutional Affiliation:

Date:

Jens Martensson

Executive Summary

The cost of healthcare has been estimated to over $3.3 trillion, yet there is little that is delivered (Blumenthal, 2017).

The United States of America is projected to presently have a population of about 327 Million.

CMS estimates that in 2017, the healthcare spending shoot up by 3.9% to $10,739 per person. (Historical - Centers for Medicare & Medicaid Services, 2019).

This PESTEL analysis will focus on the healthcare situation in the USA with a view to analyzing if my organization can consider a merger with Holy Cross hospital.

The cost of healthcare has been estimated to over $3.3 trillion, yet there is little that is delivered (Blumenthal, 2017).

The United States of America is projected to have a population of about 327 Million.

The Center for Medicare and Medicaid Services (CMS), estimates that in 2017, the healthcare spending shoot up by 3.9% to $10,739 per person. (Historical - Centers for Medicare & Medicaid Services, 2019)

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Thesis Statement

This PowerPoint Presentation will focus and present an analysis on the healthcare industry in the US by employing the PESTEL analysis method.

The strengths and weakness of the healthcare industry as determined by the outcomes the PESTEL analysis will be utilized in identifying threats and opportunities.

This PowerPoint Presentation will focus and present an analysis on the healthcare industry in the US by employing the PESTEL analysis method.

The strengths and weakness of the healthcare industry as determined by the outcomes the PESTEL analysis will be utilized in making projections of what is required to be done during merging

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Political and Economic Factors

In the US, some of the political and economic factors that impact the healthcare industry are the CMS and Obamacare.

The healthcare providers have expressed their concerns over Medicare’s resolutions to withhold payments to hospitals if they are cases of readmissions within 30 after being discharged (McIlvennan, Eapen & Allen, 2015).

Since the inception of Obamacare, CMS also cut down payment to the physicians & healthcare facilities.

As a result, the revenue for most of healthcare providers have dwindled and the majority of people find the healthcare in America costing too much than what is delivered.

These are some of challenges that would affecting merging with Holy Cross Hopsital.

Political factors

The healthcare is impacted by several political factors, namely, changes in tax legislation, consumer protection and the mandates of insurances.

Tax policies can for instance affect the government spending on healthcare, in the sense that it can be an issue of concern or it can present handful benefits.

Economic Factors

On the other hand, the economic healthcare firms may be affected economic factors like inflation, interest rates and unemployment rates.

(go to the slides )

The above factors have forced the hospitals merger to leave healthcare practice.

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Social Factors

The ageing population as well as the expansion of Medicaid are the two major social factors impacting on the healthcare industry.

The increase in the population of aging Americans is attributable to the improved healthcare as well as increased availability of healthcare facilities.

The life expectancy in the US is about eighty years and although the life expectancy is said to drop due to increase in suicidal rates in the US, there are a huge number of older people who require specialized care and costly treatment (Hosseini, 2014).

With Florida being one of the state that have high number of senior citizens, it is important to take this into consideration before considering a merger.

The ageing population as well as the expansion of Medicaid are the two major social factors impacting on the healthcare industry.

The increase in the population of aging Americans is attributable to the improved healthcare as well as increased availability of healthcare facilities.

The life expectancy in the US is about eighty years and although the life expectancy is said to drop due to increase in suicidal rates in the US, there are a huge number of older people who require specialized care and costly treatment.

With Florida being one of the state that have high number of senior citizens, it is important to take this into consideration before considering a merger.

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Technological Factors

Holly Cross has been forced to embrace some of the latest technology so as to empower the supply chain system that it has with its partners..

Holy Cross also has state-of-the-art medical equipment that most of its medical personnel have knowledge about.

Holy Cross Hospital however need to establish innovative ways developing marketing strategies that will boost its collaboration with clients in Florida State and beyond.

By embracing the advancing technological innovations will ensure that Holy Cross Hospital will always be ahead of competition.

Holly Cross has been forced to embrace some of the latest technology so as to empower the supply chain system that it has with its partners..

Holy Cross also has state-of-the-art medical equipment that most of its medical personnel have knowledge about.

Holy Cross Hospital however need to establish innovative ways developing marketing strategies that will boost its collaboration with clients in Florida State and beyond.

By embracing the advancing technological innovations will ensure that Holy Cross Hospital will always be ahead of competition.

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Environmental Factors

Healthcare industry in the US is affected by environmental factors like, the disposal of contaminated wastes.

The law stipulates that failure to abide by the laws on disposal of wastes by the hospital will attract huge fines.

Holy Cross Hospital already has in place an elaborate mechanism on how they dispose off human wastes in their facility.

With its serene and clean environment, Holy Cross Hospital has been praised by clients from other states other than Florida State.

Healthcare industry in the US is affected by factors like, the disposal of contaminated wastes.

The law stipulates that failure to abide by the laws on disposal of wastes by the hospital will attract huge fines.

Holly Cross Hospital already has in place an elaborate mechanism on how they dispose off human wastes in their facility.

With its serene and clean environment, Holy Cross Hospital has been praised by clients from other states other than Florida State.

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Legal Factors

The healthcare industry in the US is mainly impacted by CMS legal factors.

The health organizations formed after the merging has taken place needs to abide to the Obamacare, labor laws, the quality improvement laws and HIPAA compliance.

When finalizing the merging deals, it is vitally important to consider involving attorney to assist in doing the due diligence to find out if the health organization has had legal tussles.

Other legal factors that needs to be considered by the lawyers during the merging deal is how the health organization will observe intellectual property laws and consumer protection laws.

The healthcare industry in the US is mainly impacted by CMS legal factors.

The health organizations formed after the merging has taken place needs to abide to the Obamacare, labor laws and the quality improvement laws.

When finalizing the merging deals, it is vitally important to consider involving attorney to assist in doing the due diligence to find out if the health organization has had legal tussles.

Other legal factors that needs to be considered by the lawyers during the merging deal is how the health organization will observe intellectual property laws and consumer protection laws.

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Conclusion & Recommendations

The PESTEL analysis of the Healthcare Industry in the USA and Holy Cross Hospital shows that although there are a number of threats, the opportunities are more than the threats.

There is need to however do due diligence, and following all the legal steps necessary in healthcare merging.

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References

Blumenthal, D. (2017). Is M&A the Cure for a Failing Health Care System?. Retrieved from https://hbr.org/2017/12/is-ma-the-cure-for-a-failing-health-care-system

Historical - Centers for Medicare & Medicaid Services. (2019). Retrieved from https://www.cms.gov/research-statistics-data-and-systems/statistics-trends-and- reports/nationalhealthexpenddata/nationalhealthaccountshistorical.html

Hosseini, H. (2014). Aging and the Rising Costs of Healthcare in the United States: Can There be a Solution?. Ageing International, 40(3), 229-247. doi: 10.1007/s12126-014-9209-8

McIlvennan, C., Eapen, Z., & Allen, L. (2015). Hospital Readmissions Reduction Program. Circulation, 131(20), 1796-1803. doi: 10.1161/circulationaha.114.010270