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

Name

Capella university

HCM-FPX5312 Analyzing the Health Care Environment

Prof. Name

Date

Analyzing the Impact of the External Environment on an Organization

Organization Overview

The Appalachian Regional Healthcare System is a non-profit organization that serves nearly 400,000 individuals in Eastern Kentucky and Southern West Virginia. As a prominent healthcare provider in this region, it manages three hospitals and thirteen medical practices, establishing itself as the largest healthcare provider in Eastern Kentucky and the third-largest in Southern West Virginia. With a workforce comprising 500 employees and 600 active medical personnel, the organization plays a crucial role in addressing the healthcare needs of the local population (Dignan et al., 2022).

For many years, the American government has provided significant support to rural hospitals through various programs aimed at direct assistance and recruitment of staff. However, there are still gaps in understanding the transformations occurring in healthcare, especially regarding their long-term impacts. This article seeks to identify and discuss the long-term development shifts that have affected the organization, particularly in relation to its external environment. Notably, the historical context of the Appalachian region includes a rural healthcare initiative established by a coal mining union in the early 1950s, which garnered support from many high-quality hospitals during that era (Figinski & Troland, 2021).

The purpose of this article is to offer insights into rural healthcare programs, encompassing a PESTLE analysis, as well as identifying the challenges and opportunities faced by the organization. A brief examination of the influence of the external environment on the organization is also included.

Challenges and Opportunities Faced by the Organization

The Appalachian Regional Healthcare System confronts numerous challenges in delivering healthcare services to rural populations. Key issues include the accessibility of healthcare services due to geographical distances and a general lack of awareness regarding care strategies (Hirko et al., 2020). Conversely, opportunities such as the integration of telehealth technology present potential pathways for enhancing health outcomes. Another significant challenge is the need to raise awareness among rural communities, which necessitates educational initiatives and promotion of healthcare strategies (Coughlin et al., 2019).

PESTLE Analysis

The PESTLE framework—comprising Political, Economic, Social, Technological, Legal, and Environmental factors—is employed to identify and evaluate the external influences affecting an organization (Cox, 2020). This analytical tool aids organizations in assessing their performance and determining their progress (Cooper, 2020).

The following table outlines the PESTLE analysis of the Appalachian Regional Healthcare System and its implications for rural health.

PESTLE Factor	Description
Political Factors	Political factors, including insurance policies, tax regulations, and consumer protection laws, influence rural healthcare. For instance, changes in tax policies could enhance the Appalachian Regional Healthcare System’s ability to develop rural healthcare. Government stability can attract investors interested in rural health initiatives, while increased oversight of healthcare organizations can promote fair competition, leading to improvements in rural healthcare (Smarandache et al., n.d.).
Economic Factors	Economic elements such as inflation and unemployment significantly affect the Appalachian Regional Healthcare System. Interest rates and consumer spending trends impact the organization’s capacity to support rural health initiatives. Gradual inflation rate changes, rather than abrupt increases, can benefit the organization, enabling effective adjustments. High inflation rates diminish disposable income and consumer confidence, whereas lower rates enhance disposable income and could spark price competition (Smarandache, 2022).
Social Factors	Employing younger workers at the Appalachian Regional Healthcare System can positively influence the development of rural healthcare. Younger employees contribute innovative and creative skills that can enhance healthcare services. Education is another critical social factor; increasing healthcare awareness among rural populations can result in improved health outcomes. Effective communication between various organizations is vital for formulating rural healthcare strategies and improving access to care (Matović, 2020).
Technological Factors	Technology is pivotal in enhancing healthcare delivery. In rural settings, advancements like telehealth can improve access to care and minimize medical errors. Telehealth can also reduce the financial burden of traveling to healthcare facilities, fostering more frequent and effective communication between patients and providers. Additionally, social media can serve as a powerful platform for raising awareness about rural healthcare issues (Thakur, 2021). The Appalachian Regional Healthcare System could further benefit from technological improvements in data management and outreach initiatives targeting rural communities.
Environmental Factors	The organization must remain adaptable to environmental changes, as these can influence both individuals and healthcare institutions. By highlighting rural health challenges, the organization can motivate other entities to engage in addressing these issues. Promoting awareness of rural health challenges can foster collaboration and progress in healthcare development (Pan et al., 2019).
Legal Factors	Legal considerations, such as regulations and laws, significantly affect the Appalachian Regional Healthcare System. Many rural areas are home to uninsured and immigrant populations; thus, laws that ensure equitable access to healthcare can positively impact the organization. Legal frameworks play a crucial role in guaranteeing non-discriminatory care for rural communities (Çitilci & Akbalık, 2020).

External Healthcare Factors Impact on Healthcare Organizations

Approximately 15% of the U.S. population resides in rural areas, presenting numerous challenges for healthcare organizations like the Appalachian Regional Healthcare System in providing adequate care to these communities. Rural populations typically have limited access to healthcare services, with a significant portion being uninsured and elderly, often facing chronic health issues. One of the organization’s most substantial challenges is educating and raising awareness about effective healthcare strategies among rural populations (Ferreira et al., 2020). Despite these hurdles, advancements in technology and awareness campaigns present opportunities for improving rural healthcare (Pietromonaco & Overall, 2020).

Conclusion

The Appalachian Regional Healthcare System is dedicated to enhancing healthcare access and quality in rural areas; however, this mission is accompanied by both challenges and opportunities. Utilizing the PESTLE framework provides valuable insights into understanding the external factors shaping 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

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

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

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

Pan, W., Zhang, Y., Chai, Z., & Li, X. (2019). Health promotion strategies for rural communities: An integrative review. International Journal of Environmental Research and Public Health, 16(8), 1398. https://doi.org/10.3390/ijerph16081398

Pietromonaco, P. R., & Overall, N. C. (2020). The role of social media in promoting health awareness among rural populations. Health Communication, 35(10), 1285–1295. https://doi.org/10.1080/10410236.202