PESTEL Analysis of Healthcare Industry
Health care industry is one of the largest and fastest growing sectors within the economic system in the world. It is an industry that comes in three core categories; health activities, medical and dental practice activities and many other human health activities. On top of this, it is an industry that holds a wide range of professionals from surgeons, dentists, nurses, social worker, therapist and physicians among other experts. Basically, there are many players in the medical industry and for any individual or country to succeed in the field; it is a brilliant idea to look at the PESTEL analysis of many healthcare enterprises out.
Assessing the effect of the political, economic, socio-cultural, technology and other external factors is a great stage for any company or individual planning to offer health services. This can be possible through distinctive PESTEL analysis. This analysis presents a way to diagnose any key issue that the medical industry may be facing. To succeed in the PESTEL analysis, there are a number of contexts to focus your analysis on.
Firstly, look at the political impact of macro-environment. Policies governing the medical industry have been changing on daily basis. Many governments in the world have introduced ways on how to curb spending in the industry. For instance, MPs in some countries have pushed for renegotiation of large contracts in order to reduce the cost of the health care. Change in drugs importing policies and strikes by health experts due to salary irregularities are core politically related issues affecting medical industry.
Secondly, looking at economic factors in the health care industry makes it easy to understand the field. It is wise to comprehend every stage of business cycle prior to making any contribution in the medical industry. Inflation and increase in interest rates impact the health care industry greatly as many investment fail to live to their expectations. Increased cases of loss of jobs in the medical industry due to wage or salary inconsistencies have impact economy growth. It is also wise to look at the best infrastructures that can improve medical services and if it’s clear there is need for more investments in the sector.
Looking at the socio-cultural factors is a great way to study the health care macro environment. A well-researched analysis focuses on issues such as aging population, decrease in fertility, gender preferences and changing eating habits among other social health related issues. Studying the impact of the emerging technologies provides an easy understanding of the medical sector and find out what need to be improved. Advent of internet has reduced the cost of communication incurred during medical consultation and other services.
On the legal context, introducing clinical safety directives and medical device legislation has helped solve many problems in the industry. Following the set policies and laws also offer an opportunity for selling consultancy. Lastly, the environmental factors have also impacted the health care industry. Many governments have adopted the “Green” information technology whereby political imperatives can be achieved electronically.
For medical industry to be successful in the modern age, adhering to the widely acknowledged criteria for cutting cost is effective. Government should stop making unnecessary drug imports and agents. Increasing budgetary allocations for public health centers is a great strategy. With enough funds, it can be easier to train medical experts and help expand medical tourism industry for more revenues. Thus, it is upon the government and medical institutions to analyze factors that impact the industry for economy growth and good well being of the being without any future regrets.
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