Health is important for every individual, no matter from which age bracket he or she belongs. This PESTEL analysis helps in highlighting the important factors and areas that are needed to have special attention while establishing hospitals or healthcare facility. Here is the PESTEL analysis of healthcare industry.
Political Factors
Healthcare industry needs more attention of government as population health is the responsibility of them. Changing in the taxation policies, employment rules, patient protection, insurance company’s rules, medical universities procedures are all important factors to be consider by the government of the country, hence, political stability is important to set these rules. For example, if there are tax policies changes occurred in the economy, healthcare industry will be affected, as either it will require subsidies, or allowances to increase government expenditure in the industry. Every country has different rules, policies, and procedures for hiring doctors and nurses, which can be set with the correspondence of the government with hospital management (Leconte, 2021).
Economic Factors
Interest rates, unemployment, inflation, and credit availability are all economic factors which affects healthcare industry’s operation and inflation. These factors greatly affect the spending pattern of consumers. For instance, increase in the interest rates will discourage many investors to not invest in healthcare industry, which will increase the prices of the treatments, and patients have to suffer if they cannot afford it. Moreover, higher unemployment rates and decrease in the expenditure of consumers will reduce the purchases or revenues of healthcare industry. Infrastructure is also a crucial element which helps in attracting the investment for healthcare industry (Shaw, 2018).
Social Factors
Social factors are important to consider as cultural and social belief and values directly affects the healthcare industry. As there are some cultures who prefers herbal or traditional approaches for treatment. Others may go for alternative medications. As people are greatly affected by the Covid-19 pandemic, they have found social media as a blessing, as they were able to grab as much information as they can and keep themselves updated with medications and treatments. However, demographics also changes the preferences of consumers in deciding which health facility to opt for (MBA Skool team, 2021).
Technological Factors
Healthcare industry always looks forward for new research and technological development. It plays a vital role in treating and managing patients, staff, and facilities. Such advancements help patients in receiving better care. For example, cure for cancer is found through advance technologies. Hearing aid devices helps in enhancing performance, less background voices, provide crystal clear sounds, and good experience. Apps are being used to consult doctors in emergency situations 24/7. Live chats are available now and every single information about the industry is updated on internet periodically (Frue, 2018).
Environmental Factors
It is important for healthcare industry to make special consideration towards environmentally friendly products, and treatments, as good environment will keep people healthy. It should constantly involve in improving its methods for disposing waste. It should be added in its strategic planning and hospital business plan. The sustainability actions and programs have both financial and environmental benefits for the hospitals and staff. There are many hospitals who are going for LEED certificates for building design and programs according to the environment safety. Hospitals are considering CSR activities as an important department in the hospitals (Leconte, 2021).
Legal Factors
Taxation laws, policies and rules are important for the hospitals. It is important that healthcare practices as per the medical procedures and government defined rules. There are multiple laws and acts of healthcare industry which focuses on medical negligence, fees overcharging, unqualified or untrained doctors. These legislations are important as it is linked with a person’s life. Private hospitals are required to take care of all legal aspects of healthcare sector (MBA skool, 2021).
Conclusion
This PESTEL analysis of healthcare industry determined the importance of all these factors in the industry. It is important for the hospitals to consider these factors in order to have successful operations. People lives are important and needs to be protected at any cost, hence these factors must be considered by every healthcare facility.
References
Frue, K. 2018. PEST analysis of the healthcare industry. [Online], Available at: https://pestleanalysis.com/pest-analysis-of-healthcare-industry/, [Accessed on: 5th June 2021].
Leconte, P. 2021. What Goes Into A PEST Analysis For Healthcare? [Online], Available at: https://www.clearpointstrategy.com/pest-analysis-healthcare/, [Accessed on: 5th June, 2021].
MBA Skool team, 2021. Fortis Healthcare PESTLE Analysis. [Online], Available at: https://www.mbaskool.com/pestle-analysis/companies/18161-fortis-healthcare.html, [Accessed on: 5th June, 2021].
Shaw, A. 2018. PEST analysis of Health care industry. [Online], Available at: https://www.marketingtutor.net/pest-analysis-of-healthcare-industry/, [Accessed on: 5th June, 2021].