PESTEL Framework
Political
The political focus and pressure on healthcare is growing
The government is trying to cut in healthcare costs
Obama’s Health Care Reform, the Patient Protection and Affordable Care Act (PPACA) was signed into law on March 23, 2010. It is meant to “provide affordable, quality health care for all Americans and reduce the growth in health care spending”.
Economic
Reduction in families’ income due to the economic crisis
Unwillingness of customers to spend on dental care
Social/culture
Increasing age of the population
Growth in diabetes and illnesses affecting teeth
Patients are becoming more informed, thus more demanding
More pressure on customer service
Patients require more price transparency
Technological
New communication technologies
New ways of direct advertising (like Dental Clinics TV ads)
Social media for health care
Legislation
The health insurance industry has many regulatory and legislative restrictions
The evolution of internet makes patients more aware about new policies and legislations. They are now asking for more rights in their health care programs.
Many changes in advertising laws especially for health products
Environmental
Growing environmental awareness
PORTER’s 5 forces:
Threat of new entrants
All financial services companies entering the insurance market can represent a threat, also any bank or investment bank can start offering health insurance products.
On the other hand, the threat of new entrants is limited. That’s because of the various federal policies imposed by the government on insurance companies to remain open. These federal and state regulations make it very difficult to anyone to enter the health insurance market. Also, to start...
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Ability to adapt to changing markets
Weaknesses
o Huge general and administrative expenses increase due to the company’s expansion o The company is highly dependent on the US market. It’s therefore exposed to major risks owing to the fluctuations of the market and instability in economy.
Opportunities
Increase the number of services provided particularly in the dental care field
Target people who are not enrolled in any healthcare plans
Introduce new products and plans to target a specific segment of people
The company is huge, yet it’s only serving about 8 million people which is just 7% of the market. By undertaking proficient measures, the company can get hold of more growth opportunities.
Threats
o Due to economic recession, customers are increasing the pressure to cut down prices o Strong competition o Changes in government regulations
This could be controversial, if older, sicker people who need the coverage most enter the market, but younger groups decline to do so. The insurance pool will be unbalanced and the cost of coverage will rise correspondingly. The process of choosing a health insurance provider should be more consumer friendly. People covered by their employer can clear their doubt about health insurance by conversing with the Human Resource department, whereas people who buy through marketplaces or health insurance exchanges, as in the case of ACA, may not have any resource to give further explanation.
Conservatives, ideology places the values on status quo. They have difficulties accepting changes, and believe that change should be taking at a slow pace. They believe that human institutions are the product of a gradual process of experience. Conservatives believe slow changes would be more effective over a long period of time. time. They believe changing institutions and practices would affect the would affect the underlying structure. Conservatives be that it is not realistic to expect that that changes in institutions and practices would replace the existing without causing chaos.
A positive aspect of this mechanism is that it adds in a middle man, controlling and regulating insurance, minimizing risks of adverse selection for both the insurance company and the customer. When insurance is distributed by private companies, adverse selection occurs and companies refuse insurance to high risk groups and institute costly underwriting practices to others (Heath, 123). In addition to preventing adverse selection, this insurance mechanism provides all individuals with the basics of care. As of 2011, it was reported that 100% of the Canadian population was covered under the public health insurance (Nationmaster). Unfortunately, the public insurance mechanism has
Healthcare has been a topic of discussion with the majority of the country. Issues with insurance coverage, rising costs, limited options to gain coverage, and the quality of healthcare have become concerns for law makers, healthcare providers and the general public. Some of those concerns were alleviated with the passing of the Affordable Care Act, but new concerns have developed with problems that have occurred in the implementation of the new law. The main concerns of the country are if the Affordable Care Act will be able to overcome the issues that plagued the old healthcare system, the cost of the program, and how will the new law affect the quality of the health delivery system.
The United States (U.S.) has a health care system that is much different than any other health care system in the world (Nies & McEwen, 2015). It is frequently recognized as one with most recent technological inventions, but at the same time is often criticized for being overly expensive (Nies & McEwen, 2015). In 2010, President Obama signed the Patient Protection and Affordable Care Act (ACA) (U. S. Department of Health & Human Services, n.d.) This plan was implemented in an attempt to make preventative care more affordable and accessible for all uninsured Americans (U.S. Department of Health & Human Services, n.d.). Under the law, the new Patient’s Bill of Rights gives consumers the power to be in charge of their health care choices. (U.S. Department of Health & Human Services, n.d.).
The purpose of this paper is to discuss the Legislative Process and Healthcare Lobbying in the United States of America. Before a law is passed and implemented in America under both state and federal level, it has to go often time through a very lengthy legislative process except in the case of an executive order. And, without the skills and expertise of the lobbying strategies, the idea which might intended to become law may not even make it to the level of a bill not to mention the chance of it to become law. It is important for us as nurses, to understand the legislative process and become very familiar with the lobbying process and take early and prompt action to defend our interests and help prevent any negative impact that any idea or bill that may become law may have on the nursing profession.
Advances in technology have influences our society at home, work and in our health care. It all started with online banking, atm cards, and availability of children’s grades online, and buying tickets for social outings. There was nothing electronic about going the doctor’s office. Health care cost has been rising and medical errors resulting in loss of life cried for change. As technologies advanced, the process to reduce medical errors and protect important health care information was evolving. In January 2004, President Bush announced in the State of the Union address the plan to launch an electronic health record (EHR) within the next ten years (American Healthtech, 2012).
However, the reason a lot of these insurance companies are not popular among the general public is because they are new to the insurance game and are often unable to handle processing claims that have become second nature to the giants of the insurance industry. Opponents could also claim the ACA’s out of pocket maximum helps people not get drowned in debt. Sure, maybe the individuals themselves aren’t directly in debt and being spammed with outrageous hospital bills. However, the part of their bills that count toward their out of pocket maximum are sometimes unclear. “Even though things are a lot simpler now, depending on your plan not all services are going to be covered 100% and not all services are always going to count toward your out-of-pocket maximum. Double check that your health plan isn’t cutting any of the corners” (Out-of-Pocket) Opponents may also say that the ACA lowers premiums, but that 2008 statement has become increasingly known as a lie. Obama spent 2008 telling the American people throughout his campaign insurance would be reduced “up to”, “on average”, and “typically” $2,500 “per family, per year”. That turned out to be false and “by some estimates, the average rates in the individual market have increased nearly 25 percent compared to what they would have been without Obamacare, and have increased measurably in 45
With the enactment of the Affordable Care Act, or Obamacare, it seems that the laws of supply and demand have changed since everybody is now mandated to have health insurance or pay a hefty fine to not have health insurance. With the “Health Insurance Exchange,” that also affects the economics of the situation as well, along with the price of everything. Since the Affordable Care Act has been enacted, the laws of supply and demand for insurance has changed drastically, and maybe not for the better.
There is no doubt a dire need of healthcare reform in America. However, the proposed healthcare has some positive and negative aspects that impact on businesses. This paper has discussed these aspects in detail to set a framework that can receive certain considerations by the policy makers by reviewing those aspects that have dire negative impact on businesses. This would create an environment where both large and small business will be at an advantage to offer a health insurance covers to their employees, and everybody will benefit from the healthcare reforms.
An issue that is widely discussed and debated concerning the United States’ economy is our health care system. The health care system in the United States is not public, meaning that the states does not offer free or affordable health care service. In Canada, France and Great Britain, for example, the government funds health care through taxes. The United States, on the other hand, opted for another direction and passed the burden of health care spending on individual consumers as well as employers and insurers. In July 2006, the issue was transparency: should the American people know the price of the health care service they use and the results doctors and hospitals achieve? The Wall Street Journal article revealed that “U.S. hospitals, most of them nonprofit, charged un-insured patients prices that vastly exceeded those they charged their insured patients. Driving their un-insured patients into bankruptcy." (p. B1) The most expensive health care system in the world is that of America. I will talk about the health insurance in U.S., the health care in other countries, Jeremy Bentham and John Stuart Mill, and my solution to this problem.
It is hard to imagine life without health insurance. If you have any type of medical problem that requires attention, and you have appropriate health care insurance, you can be cared for in the finest of private hospitals. You can get great treatment and your ailments, depending on the severity, can be treated as soon as possible. Doctors, physicians and surgeons are willing to put out a big effort if they know that they are dealing with patients who are insured and have the money to go under extensive medical treatment. But imagine life without such luxuries. For example, what happens if a relative requires much needed surgery, but does not have health insurance to cover the procedure? What happens if a lack of medical insurance prevents you or your family from seeing a doctor, which could result in health problems that had not been identified but could have been treated before they became life threatening? These scenarios may seem far-fetched, but these types of situations happen to people who lack health coverage everyday. There is a true story about a patient who was insured and diagnosed with treatable cervical cancer. Unfortunately, she lost her job and with it her insurance. She was then unable to see her private doctor, and was turned away from other hospitals because ?cancer treatment is not considered an emergency in a patient who can?t pay? (?Help for D.C.?s Uninsured?). The woman later died at her home without ever being treated. This example raises the question, since when are people with less money less deserving of health care or appropriate treatment?
Arguably, all three situations met by the end of the 20th century. The rise of managed care, the increase of health care costs, and the growing number of uninsured patients place economic and political pressures on individuals (and governments) to find a cost-containment resolution. Additionally, since the late 1970s, the medical profession has faced the dominating principle of patient independence as a challenge – first to medical paternalism and then extending even to the principle of beneficence. More so, the usage of the Internet and other global media has expanded the ability of patients to access an...
This is a publicly traded company in the US that has been ding quite well in the recent years. The company’s 10k filing for the year 2014. From this statement, the risks facing the company will be identified classified and suggestions made on how best to mitigate them in the subsequent areas. There are various areas that the risks can arise based on the company’s 10k filling (Mertz, 1999).
The company recognizes that it is subject to both market and industry risks. We believe our risks are as follows, and we are addressing each as indicated.