HCM FPX 5312 Assessment 2 Using Market Data to Understand the Healthcare Environment

Student Name

Capella University

HCM-FPX5312 Analyzing the Health Care Environment

Prof. Name:

Date

PESTEL Analysis Continued

In the continued evaluation of external factors affecting Kaiser Permanente’s quest for a competitive edge in the highly competitive healthcare industry, it is essential to identify the key participants and stakeholders within the healthcare system. Understanding their roles is crucial for addressing the various challenges the organization faces in achieving its goals.

In the healthcare system, patients are the primary customers seeking diverse forms of care, including emergency care, inpatient care, routine medical care, surgery, and participation in research. The range of care sought contributes to a complex patient population, impacting decisions related to external supply chains. For example, the supply chain for outpatient clinics offering routine appointments differs from that of hospital locations providing emergency and intensive care. Moreover, the socioeconomic status of the population served significantly affects revenue models. Facilities in lower socioeconomic areas often handle Medicaid and government assistance, whereas those in higher socioeconomic areas serve private payers or have direct contracts with KP through employers.

Despite Kaiser Permanente’s unique healthcare model, competition remains from other healthcare systems attempting to replicate a managed healthcare approach similar to KP’s. Competitors such as Sharp Medical Center of San Diego and Med Impact present challenges, necessitating that Kaiser adapt to maintain its competitive advantage.

Kaiser Permanente’s core competency is delivering comprehensive healthcare services through a multidisciplinary managed care system. However, the potential introduction of a government-led universal healthcare system presents a challenge. In response, the organization is considering expanding its member base to include government-supplemented healthcare, potentially becoming a contracted healthcare provider under new regulations. While this strategic shift is necessary for adaptation, it risks undermining Kaiser’s competitive edge.

Market Data Analysis

Market data plays a critical role in guiding decision-making processes, forecasting member growth, evaluating healthcare costs, and shaping clinical and financial models. Enrollment and membership data, collected internally and by government agencies, are pivotal for adapting to market conditions. Kaiser’s evidence-based approach, including the acceptance of government programs when private contracts are unavailable, highlights its strategy to remain competitive.

Although historical clinical and population-based data have been instrumental in gaining insights into healthcare, the collection and use of such data are still vital for Kaiser. Analyzing market data involves understanding competitors, assessing market strategies, and comparing services with other medical facilities such as Sharp Memorial Medical Center of San Diego. By examining financial statistics, case mix indices, and revenue data, Kaiser can evaluate its competitive position, adapt to market fluctuations, and potentially benefit from government-led healthcare reforms.

References

American Hospital Directory. (2018). Retrieved from https://www.ahd.com/

Beckham, D. (2016). 10 surprising keys to strategic thinking for health care CEOs. Hospitals and Health Networks. Retrieved from https://www.hhnmag.com/articles/7096-surprising-keys-to-strategic-thinking-for-health-care-ceos

Institute of Medicine. (2010). Clinical data as the basic staple of health learning: Creating and protecting a public good: Workshop summary. Institute of Medicine (US) Roundtable on Value & Science-Driven Health Care. Washington, DC: National Academies Press (US). Retrieved from https://www.ncbi.nlm.nih.gov/books/NBK54296/

PESTLE Analysis.com. (n.d.). What is PESTLE analysis? A tool for business analysis. Retrieved from http://pestleanalysis.com/what-is-pestle-analysis