The healthcare industry depends on evaluating existing and impending legislation, changes in market and economy, societal changes over time and technological advancement. Political stability is always an important factor, change in governments can affect healthcare sector and general people as well.
The healthcare industry is the fastest growing industry in the economic system of any country. This industry is divided into three categories health activities, dental and medical activities along with various other human health practices.
The healthcare industry must understand these external environment factors. The pest analysis of healthcare industry provides better information about present and future change in political, economic, social and technological factors that affect the industry.
The Political environment impact on the healthcare industry performance is changing continuously mainly because of the changing government regulations. Many economies across the world have introduced ways through which spending in the health industry is curbed down.
The political factors like changing tax laws, employment regulations, consumer protection laws and insurance mandates can impact the healthcare industry.
In addition to this, changes in the importing policies of drugs as well as strikes of health experts because of irregularities in salary are core political issues that affect healthcare companies. Government spending on healthcare industry is greatly affected by changes in tax policy.
Unemployment, interest rates, credit availability and inflation are economic factors that affect healthcare industry performance and operation. These Economic environment changes can greatly influence the spending policies of companies and purchase behavior of consumers.
For example, increasing interest rates may fail many investors in the health sector. Similarly, higher unemployment levels or reduced buying power of consumers would imply them to not to buy the products or services of healthcare manufacturers.
It is also wise to determine infrastructures that can improve medical services and increase investment in the industry to some extent.
Socio-cultural factors focus on issues like gender preference, ageing population, reduced fertility along with beliefs, values and norms that a particular customer segment holds. It is very important for organizations to determine the culture of their consumers so as to avoid violation of values and beliefs.
For example, people use natural herbs for diseases like fever, flu and headache and this usage is constantly increasing. Understanding the reasons behind this approach can help the healthcare gurus and they can reach these patients with a better idea.
Increasing level of obesity amongst the population and the health risks associated with it is another point of concern. People are now more inclined towards eating lesser artificial sugars or processed chemicals.
People are now more informed. There is a great change in their expectations and now they have become more demanding. Hospitals and healthcare professionals can benefit from these changing and progressive trends.
This can also serve as a long-term marketing strategy as the culture of any population changes rarely. It is very important for healthcare service providers to come closer to their consumers without exceeding the regulatory limitations.
Resourcefulness and novelty stand at the heart of technology. Technological advancement in the healthcare industry can affect the performance of key players.
Medical companies are engaged in healthcare distribution as well as healthcare technology solutions. For example, power wheelchair provides people with disability to move easily within home, workspace and community. Technological innovations can also be utilized as marketing strategies for bringing in healthcare technological solutions.
Technological factors, as a matter of fact, provide excellent growth opportunities for healthcare companies. Developments in computer applications can allow patients to receive treatment or care faster than before. Now, several healthcare companies are offering apps to get doctors connected with their patients. Moreover, several healthcare institutions also allow making a live chat or email to doctors for querying about their illness.