HCM FPX 5312 Assessment 1 Analyzing the Impact of the External Healthcare Environment on an Organization

HCM FPX 5312 Assessment 1 Analyzing the Impact of the External Healthcare Environment on an Organization

Student Name

Capella University

HCM-FPX5312 Analyzing the Health Care Environment

Prof. Name:

Date

Analyzing the Impact of the External Environment on an Organization

The organization selected for this study is Appalachian Regional Healthcare System, a non-profit organization serving approximately 400,000 individuals across Eastern Kentucky and Southern West Virginia. As a leading healthcare provider in the region, it operates three hospitals and thirteen medical practices. Appalachian Regional Healthcare System is the largest healthcare provider in Eastern Kentucky and ranks as the third-largest in Southern West Virginia. With a staff of 500 employees and 600 active medical personnel, it plays a vital role in meeting the healthcare needs of the region (Dignan et al., 2022).

For many years, the American government has extended significant support to rural hospitals through direct assistance and staff recruitment programs. However, there remain gaps in fully understanding the changes within healthcare, particularly the long-term effects of these changes. This article focuses on identifying and discussing long-term development shifts that have impacted the organization, particularly concerning its external environment. The historical context of the Appalachian region is noteworthy, as a coal mining union introduced a rural healthcare program in the early 1950s, which gained support from many high-quality hospitals of that era (Figinski & Troland, 2021).

This article aims to provide insights into rural healthcare programs, including their PESTLE analysis, challenges, and opportunities. The influence of the external environment on the organization is briefly examined.

Challenges and Opportunities Faced by the Organization

Appalachian Regional Healthcare System encounters various challenges in providing healthcare in rural areas. These challenges include access to healthcare services due to geographical distance and a lack of awareness of care strategies (Hirko et al., 2020). However, opportunities such as incorporating telehealth technology offer potential improvements in health outcomes. Another challenge involves raising awareness among rural populations, which necessitates educational initiatives and the promotion of healthcare strategies (Coughlin et al., 2019).

PESTLE Analysis

PESTLE stands for Political, Economic, Social, Technological, Legal, and Environmental factors. This framework is used to identify and discuss the external influences on an organization (Cox, 2020). It helps organizations assess their performance and determine whether they are progressing adequately (Cooper, 2020).

This article explores the PESTLE analysis of Appalachian Regional Healthcare System and its impact on rural health.

Political Factors

Several political factors, including insurance, tax policies, and consumer protection laws, affect rural healthcare. Changes in tax policy, for example, could benefit Appalachian Regional Healthcare System by facilitating the development of rural healthcare. Government stability, particularly in terms of policy, can attract investors and stakeholders interested in advancing rural health initiatives. Increased government monitoring of healthcare organizations could also ensure more equitable competition, driving improvements in rural healthcare (Smarandache et al., n.d.).

Economic Factors

Economic factors such as inflation and unemployment significantly impact Appalachian Regional Healthcare System. Interest rates and consumer spending trends can influence the organization’s ability to support rural health. Moderate inflation rate changes, rather than sudden increases, are beneficial for the organization, allowing for more effective adjustments. A higher inflation rate decreases disposable income and consumer confidence, while a lower rate increases disposable income, potentially leading to price wars (Smarandache, 2022).

Social Factors

Hiring younger workers at Appalachian Regional Healthcare System could positively influence rural healthcare development. Younger employees bring innovative and creative skills to the table, which could help improve healthcare services. Another critical social factor is education. Raising awareness about healthcare among rural populations can lead to better health outcomes. Communication between different organizations is essential to developing rural healthcare strategies and improving access to care (Matović, 2020).

Technological Factors

Technology plays a crucial role in improving healthcare. In rural areas, technologies such as telehealth can enhance access to care and reduce medical errors. Telehealth can also lower financial costs associated with traveling to healthcare facilities, allowing doctors and patients to communicate more frequently and effectively. Moreover, social media can be a valuable tool for raising awareness about rural healthcare (Thakur, 2021). Appalachian Regional Healthcare System could also benefit from technological advancements in data management and outreach to rural communities.

Environmental Factors

The healthcare organization must adapt to environmental changes. The environment can affect both individuals and organizations, and highlighting rural health issues can inspire other organizations to take action. Raising awareness about rural health challenges can lead to greater collaboration and progress in healthcare development (Pan et al., 2019).

Legal Factors

Legal factors, including rules and regulations, impact the Appalachian Regional Healthcare System. Many rural areas have uninsured and immigrant populations, and laws that promote equitable access to healthcare can positively affect the organization. Legal considerations play a critical role in ensuring that rural populations receive non-discriminatory care (Çitilci & Akbalık, 2020).

External Healthcare Factors Impact on Healthcare Organizations

Approximately 15% of the U.S. population resides in rural areas, and healthcare organizations like Appalachian Regional Healthcare System face numerous challenges in providing adequate care to these populations. Rural areas often have lower access to healthcare services, and a large proportion of the rural population is uninsured and elderly, suffering from chronic diseases. Educating and raising awareness about healthcare strategies among rural populations is one of the organization’s most significant challenges (Ferreira et al., 2020). Despite these challenges, technological advancements and awareness campaigns offer opportunities to improve healthcare in rural areas (Pietromonaco & Overall, 2020).

Conclusion

Appalachian Regional Healthcare System is committed to improving healthcare in rural areas, but this mission presents both challenges and opportunities. The PESTLE framework provides a useful tool for understanding these external factors and how they shape the organization’s outcomes.

References

Çitilci, T., & Akbalık, M. (2020). The importance of PESTEL analysis for environmental scanning process. In Handbook of research on decision-making techniques in financial marketing. https://www.igi-global.com/chapter/the-importance-of-pestel-analysis-for-environmental-scanning-process/241707

Cooper, R. J. (2020). Pestle and mortal: The demise of community pharmacy in the UK. International Journal of Pharmacy Practice, 28(3), 205–206. https://doi.org/10.1111/ijpp.12635

Coughlin, S. S., Clary, C., Johnson, J. A., Berman, A., Heboyan, V., Benevides, T., Moore, J., & George, V. (2019). Continuing challenges in rural health in the United States. Journal of Environment and Health Sciences, 5(2), 90–92. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7043306/

Cox, J. (2020). The higher education environment driving academic library strategy: A political, economic, social, and technological (PEST) analysis. The Journal of Academic Librarianship, 47(1), 102219. https://doi.org/10.1016/j.acalib.2020.102219

Dignan, M., Dwyer, S., Cromo, M., Geertz, M., Bardhan, R., & Stockton, E. (2022). Development and evaluation of patient navigation training for rural and Appalachian populations. Journal of Cancer Education. https://doi.org/10.1007/s13187-022-02234-z

Ferreira, P. L., Raposo, V., Tavares, A. I., & Correia, T. (2020). Drivers for emigration among healthcare professionals: Testing an analytical model in a primary healthcare setting. Health Policy, 124(7), 751–757. https://doi.org/10.1016/j.healthpol.2020.04.009

HCM FPX 5312 Assessment 1 Analyzing the Impact of the External Healthcare Environment on an Organization

Figinski, T. F., & Troland, E. (2021). Bringing health care to Appalachia: The long-run impact of a rural healthcare system. Economic Development Quarterly, 36(3), 261–275. https://doi.org/10.1177/08912424211056685

Hirko, K. A., Kerver, J. M., Ford, S., Szafranski, C., Beckett, J., Kitchen, C., & Wendling, A. L. (2020). Telehealth in response to the Covid-19 pandemic: Implications for rural health disparities. Journal of the American Medical Informatics Association, 27(11). https://doi.org/10.1093/jamia/ocaa156

Matović, I. M. (2020). PESTEL analysis of external environment as a success factor of startup business. ConScienS Conference Proceedings, 96–102. https://www.ceeol.com/search/chapter-detail?id=1022070