SWOT And PESTEL Analysis Of Hospital Management Essay.

SWOT analysis for reasons success and loss

Discuss about the Hospital Management for SWOT and PESTEL.

The Dubai Health Authority has decided to set up a Multi Specialties to provide better quality treatment for the patients having eye problems. Using the experience of the Super Eye Hospital, which is one of the key eye health care centers of Dubai, the health department of Dubai has decided to open up the new hospital. However, due to high cost of medical expense the multispecialty hospital have to suffer from incurred loss.

In this report, the reason for the loss of the multi-specialty hospital has been analyzed using popular tools like SWOT and PESTEL analysis. Detailed recommendation has also been provided, which will help to improve the performance of the hospital governing body and hospital management.

Van Durme et al. (2014), have stated that in order to conduct the SWOT for evaluating the strength, weakness, opportunity and threats of a healthcare organization, it is important sufficient relevant data. The data and the information related to the health status and medical care that is highly important for this purpose. It is important to analyze the data that is related to the decisions that are being made by the healthcare management.

The strength of the hospital is that it is designed to provide the latest techniques of treatment related to the eye care. Being a multispecialty hospital, it is equipped with all the latest forms of equipment that are needed for providing treatment. The management of the hospital has gained significant experience from the Super Eye Hospital, which was able to make significant profit due to high rate of bed occupancy. The total numbers of successful treatment that is provided by the hospital has also helped to increase the reputation among the people of Dubai. The location of the hospital is one of the prime positions of Dubai, which makes it easily accessible for the all the people of UAE to seek treatment.

The major weakness of the health care institute however is the lack of proper marketing plan. The management of the hospital has failed to raise the level of awareness among the people about the importance of getting the latest form of eye treatment. Moreover, the high level of cost of medical service that is needed to provide treatment has discouraged the patients belonging from the middle and weaker section of the society to seek treatment. The hospital also lacks the proper healthcare workers, who have the skills to deal with the latest equipment of eye treatment.

PESTEL analysis for the reason of success and loss

However, the latest form of medical technology provides the opportunity to provide better quality of treatment. There is also no other multi-specialty hospital at Dubai, which provides the opportunity of easier competition. Nevertheless, the adverse changes, which is taking place in the medical field is posing major threat to the healthcare organization. The patients are also demanding cost-effective forms of treatment, which is one of the major challenges for the hospital. There are also the issues of crisis of skilled healthcare workers, who have proper training with the use of heavy medical instruments.

With the help of the PESTEL analysis it is possible to investigate all the elements that have the capacity to influence all the business performance of the industry. The PESTEL analysis is the acronym for political, economic, social, technological, environmental and legal factors, which helps to determine the success rate of business (Yüksel et al. 2012).

The healthcare industry of Dubai is one of the fastest growing sectors of the nation, which is highly affected by all the major issues related socio-economic aspects. Dubai is considered to be one of the developed cities of the world and is also one of the major cities in the Middle East regions (Laeequddin, et al. 2016).

The political system of Dubai is made up of federal structure and hence, there are no political parties in the nation. However, the country often face crisis due to political crisis. The seven different types of Emirates with the Saudi Arab region have allowed the nation to enjoy the flexible mode of governance (ANDREI and PRISECARU 2014). The frequent political conflicts within the nation disturb the business environment of the nation.  

The economic condition is another important element of the external business environment. The high GDP and per capita of UAE has helped the multi-specialty eye hospital to make significant process. Nevertheless, the nation also faced issues due lower rate of employment and poor level of income. Thus, a major section of the people of the nation does not have the money to afford for high level of medical treatment. Hence, the target group of the Eye hospital is limited to smaller section of the society. On the other hand, the high flow of foreign investment that is being received by the country has helped the Eye hospital to provide lower cost medical treatment (Balasopoulou et al. 2016).

The choice of the people in the society of the people of UAE to choose high quality medical service has also helped the health institute to make significant profit. However, the discrimination that exists in the society has not allowed the monitories in the society of UAE to avail better quality care in high standard healthcare center. This is one of the major causes of loss faced by the Eye hospital. 

Reason for huge incurred loss

The poor technological infrastructure of the nation has been challenging for the Eye hospital as they require the use of the latest forms of medical equipment. The health authority of Dubai also does not have proper plans for the improvement of the application of technological equipment in the medical care centers.

The hot and dry weather in the nation of UAE makes a challenging environment for proper business operating process. There no specific guidelines for the legal system in UAE and hence, this factor do not pose special challenge for the business environment. Nevertheless, the absence of proper business laws has allowed many unethical practices within the Eye hospital.

The lack of planning process by the Dubai Health Authority, which is a government organization, is the prime cause for the failure of the Eye hospital for making significant profit. The multi-specialty hospital also requires proper technological infrastructure and the lack the system has resulted in the poor implication of the medical equipment. The lack of proper leadership meant that the decisions that were taken by the health workers were not able to meet the requirements of the patients of the hospital.

The price of the medical cost that is provided by the Eye hospital is highly expensive that has resulted in lower number of patients. Moreover, due to poor planning process the Eye Hospital has to suffer financial loss due to the lack of proper planning. The healthcare failed to provide treatment to the patients requiring quick treatment action as they lack proper skilled working staffs. The lack professional doctors also lowered the reputation as the patients lost their faith about the quality of treatment that is being provided. The hospital also lacked the ability to deal with critically sick patients. The cost of the supply has gone up significantly due to increased expense of the supply of medical needs. The operation process of the hospital also requires high expense, which increased the overall expenditure of the hospital management.

The Dubai Health Authority is the primary governing body of Dubai, which provide guidelines of health regulation within the city of Dubai. The authority is responsible for providing the health infrastructure that is needed for providing high quality health service. They have the responsibility to deal with all the major issues related to the health service that is available in Dubai. The primary role of the health authority of Dubai is to monitor the performance of all the hospitals and healthcare centers (Hussein et al. 2015).

Recommendations for the Hospital governing Board

The change in the modern forms of treatment demands modifications in the treatment techniques, which will help to meet the growing demand of high quality health service. The economic change in the global health market is caused due to the introduction of the modern forms of equipment in the health service. However, due to lack of proper planning for the future the Eye Hospital in Dubai has sufferer as they failed to the implement the guidelines (Singer et al. 2015).

It is important for the health authority of Dubai to attract investors from all sectors, which will help in the process of fund raising process for the healthcare sectors in Dubai. For effective hospital management project it is important to improve the market environment of the healthcare sectors. The tax for the manufacturing of healthcare products needs to be decreased. This will help the healthcare sectors to reduce the expense and thereby provide healthcare at lower costs. The health authority needs to raise the level of awareness about the importance of using the modern form of treatments. They also need to monitor whether all the healthcare centers are following the guidelines of the ethical conduct, which includes providing minimum wages to all the healthcare workers and not allow any forms of discrimination while providing treatment to the patients (Wagner et al. 2014). Protecting the needs of the environment and promoting the healthcare policies are the other important duties of the health authority, which will help to improve the healthcare market of Dubai.

There are certain key performance indicators, which will help the Eye Hospital to deal with the issues regarding high cost and lower quality of health service. The management of the hospital needs to collect significant amount of data related to the clinical and financial service. In order to increase the profit margin for the hospital, it is important to use the ten major indicators for the in the management and operation department of the hospital (Tracey 2015).

With the help of the survey with the clients of the hospital, it is possible for the management of the hospital to understand the needs of the patients. The measuring elements of the Likert Scale are used as the indicators to measure the satisfaction level of the customers.

The survey regarding the safety level of the customers will help the hospital to take measures increase the level of safety within the hospital. Following are the ten key performance indicators for the hospitals.

Performance Indicators	Description and Justification	Rating According to Likert Scale
Accommodation	This is the primary requirements of the hospital. The management of the hospital needs to maximize the total number of accommodations. However, it is important to ensure that all the beds have proper equipment for proper life support. The occupancy rate helps to identify the total number of patients, who are admitted in the hospital.	3
Average Room Rate	This is measure of the earnings that is made by the hospital from each room. The rate depends upon the total number of beds that is available in each of the rooms.	3
Patient Satisfaction	It is the measure of the satisfaction by which the employees are satisfied with the service provided by the health care centre. This is the most important indicators, which helps to indicate about the service quality, which is provided by the healthcare center.	4
Labor cost Ratio	This is the measurement of the salary given to every health workers. With the help of this indicator it is possible to evaluate the quality of service provided by patients.	3
Inpatient raw mortality rate	This is the statistical measure of the total number of deaths that occurs among the admitted patients of the hospital. Low mortality rate indicates better quality service for the hospital.	4
Revenue per available room:	It is the measure of the amount earned from the beds available per rooms. Higher the rate of revenue earned, higher is the rate of success for the healthcare center.	3
Readmission rate	This is the indicator of the total number of patients, who got re-admitted in the hospital after getting discharge from the hospital. Higher the rate of readmission, greater is the performance rate of the hospital.	3
Average Length of Stay	It is the average length of stay that is calculated by dividing the number of patient admission with same diagnosis related problems. Lower the average length of stay, higher is the chance of success.	4
Claims denial rate	It is the measure of the total number of denial faced by the patient while claiming any health service from the hospital. Lower the number of denial rate, higher is the chance of success.	4
Stakeholders Reliability	This is the measure of participation, taken by the stakeholders of the hospital. Greater the value of stakeholder’s reliability, greater in the chance of success for the healthcare center.	3

These indicators are used by the hospital management in order to improve the performance of and also measure the progress they are having in making business.

Highly Satisfied	Satisfied	Neutral	Dissatisfied	Highly Dissatisfied
5	4	3	2	1

Conclusions

In order to provide better health service, it is important for the Eye hospital, which is equipped with the latest forms of medical technology to lower the cost of medical service. It is also the duty of the hospital management to use operational skills in order to implement cost effective forms of treatment. The use of the KPIs is one of the main indicators, which will help to measure the performance level of the hospital. The management of the hospital will use the elements of the KPIs to improve the business performance of the hospital.

Reference

Andrei, V. and PRISECARU, I., 2014. The use of PESTEL analysis in development of the Romanian geological repository. UPB Sci. Bull. Series C, 76, pp.247-254.

Balasopoulou, A., Latsou, D., Kousoulakou, H., Michael, N., Mc Kenzie, D., Mair, A., Vontetsianos, T. and Geitona, M., 2016. The use of PESTEL as a change management tool to inform change management of polypharmacy and adherence within SIMPATHY program. International Journal of Integrated Care, 16(6).

Hussein, H., 2015. Predictors of Patient Satisfaction Among Diabetic Population Attending Primary Health Care Centers at Dubai Health Authority. Quality in Primary Care.

Laeequddin, M., Laeequddin, M., Abdul Waheed, K. and Abdul Waheed, K., 2016. Strategic management in cartelized environment: case of Hisham Packaging, Dubai. Emerald Emerging Markets Case Studies, 6(2), pp.1-16.

Singer, S.J., Hayes, J.E., Gray, G.C. and Kiang, M.V., 2015. Making time for learning-oriented leadership in multidisciplinary hospital management groups. Health care management review, 40(4), pp.300-312.

Tracey, J.B., 2015. Hospitality HR and Big Data: Highlights from the 2015 Roundtable.

Van Durme, T., Macq, J., Anthierens, S., Symons, L., Schmitz, O., Paulus, D., Van den Heede, K. and Remmen, R., 2014. Stakeholders’ perception on the organization of chronic care: a SWOT analysis to draft avenues for health care reforms. BMC health services research, 14(1), p.1.

Wagner, C., Groene, O., DerSarkissian, M., Thompson, C.A., Klazinga, N.S., Arah, O.A., Suñol, R. and DUQuE Project Consortium, 2014. The use of on-site visits to assess compliance and implementation of quality management at hospital level. International Journal for Quality in Health Care, 26(suppl 1), pp.27-35.

Yüksel, I., 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), p.52.