Analyzing the Impact of the External Environment on an Organization
Organization Overview
HCM FPX 5312 Assessment 1 Appalachian Regional Healthcare System is a not-for-profit healthcare system which delivers care to nearly 400,000 residents of Eastern Kentucky and Southern West Virginia. As one of the largest healthcare providers in the region, it runs three hospitals and thirteen medical practices and is now the largest healthcare provider in Eastern Kentucky and the third-largest in Southern West Virginia. With 500 employees and 600 active medical personnel, the organization is in the lead in addressing the healthcare needs of the population in the region (Dignan et al., 2022). The US government has assisted rural hospitals for decades through various programs that have been focused on direct assistance and staffing recruitment. But there are still gaps in the understanding of changes occurring within healthcare, especially their long-term impacts. This article tries to define and respond to the long-term changes in development that have affected the organization, particularly its external environment. It is worthwhile to mention that the history of the Appalachian region involves a rural health program launched by a coal mine worker union in the early 1950s and backed by many high-grade hospitals during that time (Figinski & Troland, 2021). The objective of this article is to discuss some insights about rural healthcare schemes, such as a PESTLE analysis, and identifying challenges and opportunities faced by the organization. A consideration of the overall impact of the external environment on the organization has also been highlighted.
Challenges and Opportunities Faced by the Organization
The Appalachian Regional Healthcare System faces numerous challenges in delivering healthcare services to rural dwellers.
Some of the key areas include access to healthcare services with geographical distances and poor awareness regarding strategies for care (Hirko et al., 2020).
Conversely, programs such as telehealth technology integration provide potential avenues for enhancing health outcomes. A second critical challenge is generating awareness among rural communities, and this calls for education campaigns and lobbying efforts for healthcare interventions (Coughlin et al., 2019).
PESTLE Analysis
HCM FPX 5312 Assessment 1 The PESTLE model—Political, Economic, Social, Technological, Legal, and Environmental—is based on a framework to identify and analyze external factors impacting an organization (Cox, 2020).
This tool of analysis assists organizations in measuring their performance and gauging their progress (Cooper, 2020).
The following table gives the PESTLE analysis of the Appalachian Regional Healthcare System and its rural health implications.
| PESTLE Factor | Description |
| Political Factors | Political considerations, including insurance policies, tax regulations, and consumer protection regulations, influence rural healthcare. For instance, tax policy changes can enhance the Appalachian Regional Healthcare System’s ability to construct rural healthcare. Government stability can attract investors who are ready to invest in rural health initiatives, while increased regulation of healthcare organizations can increase fair competition, leading to improved rural healthcare (Smarandache et al., n.d.). |
| Economic Factors | The Appalachian Regional Healthcare System is significantly influenced by economic determinants like unemployment and inflation. Interest rates and the patterns of consumer spending influence whether the organization can finance rural health initiatives. Gradual inflation rate changes, compared to sudden spikes, will be advantageous to the organization to enable effective adjustments. Rising inflation lowers consumers’ disposable incomes as well as their confidence levels, but lower inflation raises consumers’ disposable incomes and may stimulate price competition (Smarandache, 2022). |
| Social Factors | Recruitment of younger employees in the Appalachian Regional Healthcare System can positively contribute to rural healthcare growth. Younger employees bring new and innovative skills that can enhance healthcare services.Another of the most important social determinants is education; increased awareness of healthcare among rural population members can result in improved health outcomes. Effective communication between various organizations is critical in formulating rural healthcare plans and improving accessibility to care (Matović, 2020). |
| Technological Factors | Technology is central in enhancing the delivery of healthcare.In rural areas, technologies such as telehealth can enhance access to care and reduce medical errors.Telehealth can also decrease the economic cost of transportation to healthcare centers, promoting increased and effective interaction between patients and providers.Furthermore, social media can be a great tool for promoting awareness of rural healthcare challenges (Thakur, 2021). The Appalachian Regional Healthcare System can also benefit from advances in data management and outreach programs to rural communities. |
| Environmental Factors | The company should be in touch with environmental factors since they can influence people and healthcare facilities. With a focus on rural health problems, the company will be able to motivate other stakeholders to be involved in addressing such challenges. Rural health awareness can foster collaboration and improvements in healthcare planning (Pan et al., 2019). |
| Legal Factors | Legal considerations, such as legislation and policies, are critical in shaping the Appalachian Regional Healthcare System. Rural communities have populations of immigrants and the uninsured; thus, legislation that ensures equal access to healthcare can be beneficial to the organization.Legal structures are critical in guaranteeing non-discriminatory treatment to rural communities (Çitilci & Akbalık, 2020). |
External Healthcare Factors Impact on Healthcare Organizations
It is estimated that around 15% of the American populace resides in rural places, presenting numerous challenges to healthcare facilities like the Appalachian Regional Healthcare System in providing appropriate care to the residents of the rural regions.
Most people in rural communities are typically short of access to healthcare facilities and are mostly old and uninsured with chronic diseases.Creating awareness and educating rural community members on healthcare strategies is among the biggest tasks for this organization (Ferreira et al., 2020).Despite these challenges, awareness programs and technological advancements leave space for improvements in rural health (Pietromonaco & Overall, 2020).
Conclusion
The Appalachian Regional Healthcare System aims to enhance the quality and access of healthcare in rural areas; however, it is both challenging and rewarding. Using the PESTLE framework provides clear indications of learning about external factors affecting the performance of the organization.
References
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HCM FPX 5312 Assessment 1 Analyzing the Impact of the External Healthcare Environment on an Organization
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