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Overview of Hospital Industry and Bethesda Hospital

Discuss about the PESTLE Analysis of Hospital Industry.

With the changes in economic and complex business structure, each and every organization is using effective strategic planning method. However, the strategic planning for the organization is highly based on the social, political, economic, legal and technological factors. It is observed that Strategic cost management is a wider term with wider aspects that refer to reducing total costs and increasing total value of the business or strategic position of the business. To achieve that strategic position, an organization needs to find out the importance of each cost. They have to identify that which cost is important to the organization that actually add to the profits of the business and which cost is weak in nature that can be avoidable in nature. This report focuses on the hospital organization and proper Pestle analyses have been taken to evaluate the business performance and quality of the services offered by the organization.  In this report, Bethesda hospitals from the Australian hospital industry have been selected. This hospital business and other factors will be assessed in this report to determine its strategic performance and business situation in the Australian hospital industry.  This Australian hospital industry is a broad industry that is really achieving good growth. If they have to decrease their strategic costs then they need to do a proper analysis of the competitors and several factors that affect the operations of the organization.

Bethesda hospital is the very renowned private surgical hospital that provides treatment of many diseases to their patients like urology, Gynecology, plastic surgery, pain management and general surgery. It is located in Queensland. Major competition for Bethesda hospital is the other general hospitals that are providing same facilities to their customers at a cheap rate. Galindo Martin & Nissan, 2010). These hospitals are Royal Adelaide hospital, The Royal Melbourne Hospital, and Princess Alexandra hospital. Bethesda hospital was found 125 years ago. They provide acute- level health care to their patients as well as treat injuries and illness also that has a long-term effect. In case of long-term acute care patients, the treatment is divided into two parts. Firstly they provide hospital-level care to the patients and afterward rehabilitation care has been given to them. They support their patients in social, mental, psychological, spiritual and physical needs.  (Ansari, 2010)They provide special care to the patients who are suffering from neurovascular conditions, respiratory illnesses, complex medical problems and physical and behavioral disabilities because these diseases need special care. Further medical treatments and behavioral management have been done to them. This hospital has been gaining momentum throughout the time by using its advance treatment care services. However, the main focus of the company is to deliver the best level of treatment for the patients and consistently increasing their satisfaction level.

The Vision of Bethesda Hospital

The main mission of the hospital is to build an effective hospital program for the patients suffering from neurovascular conditions, respiratory illnesses, complex medical problems and physical and behavioral disabilities.

It has also developed facility dedicated to physician training program with the state of art technologies. It will give a new opportunity to the students to learn advanced and new training program for the patients care.

It has the mission to develop a people-centric district health service in the Bethesda catchment area where everyone could grab equal access to quality and comprehensive district health services.

The core value of Bethesda hospital is accompanied by following factors such as open communication, advance treatment, innovative technologies and commitment to performance to render best patients care services (Moro Visconti, 2016).

`There is a trend of Globalization and due to that; the competition within the industry is getting tougher. In hospital industry of Australia also, a lot of competition exists. There are so many technological changes and because of that, every hospital has to create new technological advancement into hospitals also (Etienne, et al. 2014). In Australia, the general hospital is on its growth stage. Funding of public hospitals has been done by state and federal governments and private hospitals generate their funds from the health services provided to patients and patient fees. It has been noticed that in some past years, the number of patients has been increased due to the quality of services they provide and some of them have opted for membership under private health insurance. The revenue of the whole industry was $52.9 billion; the number of workers was $13000. Employment opportunities in hospital industry are also increasing in the country.  (Chung, Gaynor and Richards-Shubik, 2016)

There are some other services too like there is an administrator in the hospital who is always presented in the hospital. There is a common desk number on which he is available to the patients and their families. They have an ATM machine in their hospital to provide convenience to the customers. There are some special services too like valet parking, internet access, financial assistance, and barber. These are the recent industry benchmarks as these services are provided by all the other similar hospitals. There are various suppliers for the industry who provides basic hospital things to the hospitals. There are some medical equipment companies who produce several machines. So they provide all the necessary equipment to the hospital. (Campbell, 2017)

However, with a view to analysis, all the external factors of the Bethesda hospital proper PESTEL analysis have been implemented. This analysis will assist in identifying all the influential factors which Bethesda hospital could undertake before formulating the business strategies.

Research Analysis

PESTEL analysis refers to the analysis of the political, economic, social, technological and legal system of a country in concern to a particular industry or any organization (Nolan, 2015).

Political factors- There are different political factors that can hamper the operations of hospital industry. There are many government policies in reference to the level of intervention in the country. Sometimes government controls the supply of goods and raw material. In Australia, the political environment is quite open and stable. It is important for all the hospitals in Queensland to get the hospital licenses from Queensland Health Private Hospitals Regulatory Unit as they are responsible to authorize the operations of the hospital. (McDermott, Cashore and Kanowski, 2011). However, after analyzing the political environment of Australia, it is observed that the political situation of the country is too stable and it reflects positive indicator for the effective business performance of Hospital industry. Australia is the independent nation that belongs to the commonwealth (Benzi, and Mastroianni, 2016). The political condition of Australia is very positive which may play a positive indicator for the Hospital industry for running their business effectively. It is observed that hospital in the hospital industry could use these political factors to improve its existing business and expand its business. However, there is the requirement to take the renewal of licenses yearly. Each and every doctors and nurse working in the hospitals should be qualified for their position. In addition to this, emergency services of the Hospital industry will be provided to the patients for 24* 7 hours as per the government guidelines and rules (Larkin, 2016).

Technological factors- As per market research, it has been observed that there is a need for the integrated healthcare system and easy accessibility of data. Data of the hospitals is confidential and there is always a concern regarding the confidentiality, safety, and security of data. There are many new technologies that have been come in past decade so it is necessary to adopt this technology. There is a technique called cyber psychology that focused on to make clinical change and infrastructure of technology parallel in hospital industry (Mohanan Nair & Vijayachandran Pillai, 2009). It is observed that the people in Australia are more inclined towards the advanced technologies. It is analyzed that the Hospital industry needs to adopt newly advance technologies and machines in the patient care treatments. If hospital industry has installed advanced technologies and system then it will increase the quality of the services and advance work system of the organization. The changing pattern of disease and improvement in medical and communication technologies are contributing to the momentum for a new approach which ensures the responsive demand of the 21st century in the hospital and care industry. The patients care for neurovascular conditions, respiratory illnesses, complex medical problems and physical and behavioral disabilities could be treated by the advanced machines and treatments. However, several other organizations such as Royal Adelaide Hospital, Melbourne hospital, and other big hospitals are using advance international machines and technologies to treat their patients. If hospitals in the Australia do not install advanced technologies in its hospital care process then it may negatively impact its hospital care services. Nonetheless, the cyber computing system is ideally used by the healthcare organization in the project management and development of the data storage system of the clients (Boyes, & Aylott, 2017).

PESTLE Analysis of Hospital Industry

Environmental- There is a focus on Go Green as pollution has been released by many industries that are really harmful (Igli?ski, et al. 2016). It has been suggested all the hospitals in Australia need to use energy-efficient lighting and backup generators so they can be used at the time of emergency. There are many initiatives has been taken by the hospital to create a common policy for dumping the hospital wastes in an effective way because hospital waste is hazardous in nature. The environmental situation of Australia is very positive and central Australia has the dry climate which may result in increased number patients. The management of the hospitals in Australia needs to implement proper strategic plans and procedure to mitigate the possible health care problems and issues. The department of the environment of Australia has set up several rules and regulation to maintain the clean environment. However, hospitals in Australia need to assess the factors and enlighten its business process and environmental programs. This hospital has already taken the licenses and permits from the federal department of the environment for its care services. However, the importing of drugs from the other country such as hazardous chemicals and drugs will pass through after taking proper approval from the government (Adewunmi, 2014).

Social – The social factors is determined on the basis of the values, belief, perception, and outcomes of the patients in Australia. It is observed that the people in Australia are more inclined towards the sophisticated and advanced technologies for their treatments. However, the management committee of the hospital industry has been formulating the business process management program with a view to satisfying patients' needs and increasing their satisfaction level (Mohanan and Vijayachandran Pillai, 2009). The Wards developed X-ray machines and operating theaters of the hospitals have been designed in such a way which could add value to the treatment of the patients in an effective manner. However, with the strength of the 200 staff members and more than 30 doctors' team, the hospital has formulated a proper health care chain (Beserra, et al. 2017). Patients want to treat their diseases from the hospital that have expert's doctors and highly advance technologies and machines in their healthcare process. All the hospitals have developed the strong brand image in Australia for the treatment of neurovascular conditions, respiratory illnesses, complex medical problems and physical and behavioral disabilities and also earned a good value after the successful number of patient's treatment. Hospitals in Australia seek to deliver its mission in the framework of strong faith-based value and with the assistance of the dedicated staff team members it has been providing advanced treatment for the betterment of the patients at large. Nonetheless, in Australia, Universal health system board provides support to the patients for their treatment. Therefore, hospitals in Australia have to set up the direct link with the Universal health system board for the improvement of the existing work performance and increase the value of the patients by rendering the best quality of the treatment (CHISWELL, COOPER, and PACKHAM, 2015).

Political Factors

Economical- As per the statistical data of Australia, the GDP of Australia per capital is 49,927.82 USD ‎ (2016) which is 2.7% higher as compared to last three year data. However, the GDP rate of the country is 2.8% which reflects that purchasing power of the people in Australia is consistently increasing their income and expenditure. Nonetheless, the public healthcare industry has the overall turnover of the $192 billion in 2016 which is 5% of the overall GDP of the country (Gehanno, et al. (2009). It has been observed that all the hospitals in Australia have to set up strong with the advancement of the technologies and effective healthcare treatment at large. The growth in the health spending in the country is slowly but in context with the GDP rate, it is consistently rising. As per the government data, it is observed that the government of Australia contributing the ($44.4bn) to the health expenditure of the country. This shows that Australian government is also endeavoring towards supporting patients to take their treatment from the Australian public healthcare organization instead of tapping international hospitals at large (Visconti, Do?, and Gurgun, 2017).

Legal factors- After analyzing the government statistical data, it is observed that with the increased use of advanced technologies revolutionizing modern medical practice. Hospitals in Australia are required to uphold high standards for protecting the patient’s privacy and increasing the value of the patients. All the drugs imported by the hospitals in Australia from the outside countries and machines needs be undergone from the healthcare department of Australia.  However, all the healthcare organizations need to comply with the Australian Information Commissioner's Pound Road Medical Centre for the privacy of the data records of the patients. It is considered that all the hospitals in Australia have complied with the all the applicable rules and regulation while rendering the health care services to its clients (Hamdan, 2017).

  • All the healthcare facilities in the hospital operations should have proper or appropriate physical environment
  • The proper advance communication cyber system should be used to implement proper strategic plans to increase the overall outcomes and efficiency for the health care services for the patients of the hospitals.
  • Health facilities need well trained and motivated staff members’ who could provide 24*7 care services to patients.
  • Setting measure for the quality and safety program which could track the progress of the quality improvement of the health care services program of the hospitals.
  • All the hospitals in Australia should use proper Six Sigma five-phased process to improve their existing health care program for the betterment of the patients care services.
  • Implementation of the protocol and adapting the organization culture and work system as per the needs and demand of the patients.
  • Setting strategic alliance with the government and other supporting bodies to promote the patient treatment with the government intervention support.
  • Set new norms and health care policies for the better treatment of the patients in determined approach.
  • Implementation of the cyber computing system and analytical work program to implement proper health care functioning for the better and efficient treatment of the patients in Australia.
  • Hospitals need to the integrated healthcare system and easy accessibility of data. Data of the hospitals is confidential and there is always a concern regarding the confidentiality, safety, and security of data.
  • Hospitals should follow common policy for dumping the hospital wastes in an effective way because hospital waste is hazardous in nature.
  • Proper arrangement and advanced technologies should be installed in the hospital premises so that patients will not be asked to go outside for the further checkup and treatment.

Adewunmi, A. 2014. A Critical Appraisal of the Summary Care Record (SRC) Scheme in England: Medway Maritime Hospital Case Study.

Ansari, S. 2010. Target Costing. LaVergne, Tenn.: Mountain Valley Publ.

Benzi, J. R. D. L., and Mastroianni, P. D. C. 2016. Analysis of extemporaneous oral liquid from commercially available drugs in hospital. Brazilian Journal of Pharmaceutical Sciences, 52(3), 517-525.

Beserra, M. P. P., de Oliveira, C. L. C. G., Portela, M. P., de Oliveira Lopes, M. V.and de França Fonteles, M. M. 2017. Medicines via enteral feeding tubes in inpatients: dispersion analysis and safe use of dispensers. Nutricion hospitalaria, 34(2), 257-263.

Boyes, S., and Aylott, J. 2017. Effective Hospital Leadership: Theory and Practice. In Why Hospitals Fail (pp. 69-79). Springer, Cham.

Campbell, P. 2017. A Quick Start Guide to Financial Forecasting. Ashland, UNITED STATES: Grow & Succeed Publishing Llc.

CHISWELL, C., COOPER, R. and PACKHAM, C., 2015. Healthcare public health. Practicing Public Health: A Guide to Examinations and Workplace Application, p.45.

Chung, A., Gaynor, M., and Richards-Shubik, S. 2016. Subsidies and Structure. Cambridge, Mass: National Bureau of Economic Research.

Etienne, M., Lefebvre, E., Frebourg, N., Hamel, H., Pestel-Caron, M., and Caron, F. 2014. Antibiotic treatment of acute uncomplicated cystitis based on rapid urine test and local epidemiology: lessons from a primary care series. BMC infectious diseases, 14(1), 137. 

Galindo Martin, M., & Nissan, E. 2010. International political economy. Hauppauge, NY: Nova Science Publishers.

Gehanno, J. F., Louvel, A., Nouvellon, M., Caillard, J. F., and Pestel-Caron, M. 2009. Aerial dispersal of meticillin-resistant Staphylococcus aureus in hospital rooms by infected or colonised patients. Journal of Hospital Infection, 71(3), 256-262.

Hamdan, A.L., 2017. Strategic Thinking in a Hospital Setting. Springer.

Igli?ski, B., Igli?ska, A., Cichosz, M., Kujawski, W., and Buczkowski, R. 2016. Renewable energy production in the ?ódzkie Voivodeship. The PEST analysis of the RES in the voivodeship and in Poland. Renewable and Sustainable Energy Reviews, 58, 737-750.

Larkin, S. 2016. Implementing Coaching to Facilitate the Development of Leadership Competencies Within a Dublin Academic Teaching Hospital (DATHs).

McDermott, C., Cashore, B., & Kanowski, P. (2011). Global environmental forest policies. London: Routledge.

Mohanan Nair, V., and Vijayachandran Pillai, B. 2009. Hospital industry. Ambala Cantt., India: Associated Publishers.

Moro Visconti, R. 2016. Healthcare public-private partnerships in Italy: Assessing risk sharing and governance issues with PESTLE and SWOT analysis. Since empirical considerations about Italy may be globally extended, even beyond the healthcare industry, the audience of this study may conveniently widen well beyond its apparently narrow focus.

Nolan, P. G. 2015. Planned implementation of an integrated Cardiovascular Information System in an Acute Hospital Group.

Visconti, R.M., Do?, A. and Gurgun, A.P., 2017. Public–Private Partnerships for Sustainable Healthcare in Emerging Economies. In The Emerald Handbook of Public–Private Partnerships in Developing and Emerging Economies: Perspectives on Public Policy, Entrepreneurship and Poverty(pp. 407-437). Emerald Publishing Limited.

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