Pestle analysis of healthcare industry. The healthcare industry is a combination of fields that offer various products and services to help patients with palliative care, rehabilitation, preventive, and curative. The modern healthcare industry has got three main branches, and they’re as follows;
- Finance
- Products
- Services
According to an estimate, the average healthcare spending in 2021 reached 4.3 trillion dollars in the USA. It comprises 12,914 dollars per person; contributing 18.3% of the country’s total GDP to healthcare.
Some of the top brands in the healthcare industry are as follows;
- United Health
- GE Healthcare
- Cardinal Health
- Abbott Laboratories
- Phillips
- Pfizer
- Stryker
- CVS Health
- Johnson & Johnson
Today, we’ll discuss pestle analysis of healthcare industry. It is going to focus on external political, economic, social, technological, legal, and environmental factors impacting the healthcare industry. Here’s the pestle analysis of healthcare industry as follows;
Political Factors Impacting Healthcare Industry
Some of the main political factors in the pestle analysis of healthcare industry are as follows;
Government Regulations
The healthcare industry carries a lot of shared responsibility over its shoulders of taking care of people and keeping them healthy. That’s where the role of government comes into play by regulating various industries and processes relevant to the healthcare industry, and they’re as follows;
- Medical billing
- Medical insurance
- Patient protection rules
- Medical universities procedures
- Hospital employees rules
- Rules for hiring doctors and Nurses
Taxations
Governments of different countries keep on changing and updating their taxation policies with the passage of time. When it happens, then it directly impacts the healthcare industry, because either it would need subsidies or allowances to amplify the government spending in the medical industry. Heavy duty and increase taxes would impact the import of medical equipment and medicine that you buy from other countries.
Economical Factors Affecting Healthcare Industry
Some of the main economical factors in the pestle analysis of healthcare industry are as follows;
Spending in Healthcare
The healthcare industry operates under the economy of any country. Various economic indicators like purchasing power of people, consumer spending patterns, unemployment rate, interest rate, and inflation would impact the spending in the healthcare industry. Higher unemployment would decrease the buying power of people, and they would limit their spending on healthcare. Establishing medical infrastructure requires a lot of investment, and it won’t be possible if the economy is going down.
Social Factors Impacting Healthcare Industry
Some of the main social factors in the pestle analysis of healthcare industry are as follows;
Cultural Beliefs
Socio-cultural factors play a significant role in the growth and development of healthcare industry. For instance, some cultures prefer the herbal and conventional methods of treatment, and others want modern treatment and medicine. Different demographics of people impact the choices and preferences of people when it comes to choosing a healthcare facility.
Technological Factors Impacting Healthcare Industry
Some of the main technological factors in the pestle analysis of healthcare industry are as follows;
Tech Development
The focus of healthcare industry is always on the latest research and development in terms of new medicine and medical equipment. It is beneficial for both parties patients would receive better treatment and the healthcare industry would update their facility, new medicine, and the latest equipment. Overall, the impact of technological development is great in the following ways;
- Live consultation with the doctors in the emergency situation
- Good experience and offering crystal clear voices
- Updating medical staff about the latest industry information
Legal Factors Affecting Healthcare Industry
Some of the main legal factors in the pestle analysis of healthcare industry are as follows;
Regulations
Government policies on taxes directly impact the healthcare industry, and they need to adjust their medical procedures and hospital practices relevant to the regulations. There are various laws and policies that regulate the healthcare industry;
- Unqualified or untrained doctors
- Fees overcharging
- Medical negligence
There are separate regulations and laws for private hospitals and private healthcare facilities.
Environmental Factors Impacting Healthcare Industry
Some of the main environmental factors in the pestle analysis of healthcare industry are as follows;
Eco-Friendly Products
It is significant for the healthcare industry to engage in environmentally friendly practices and develop environmentally friendly products that are good for the environment and the people. The focus of the company should always be on the effective management of disposing of waste. It would help the company to develop strategic hospital business plans.
Sustainable Practices
Environmentally sustainable strategies and practices offer a lot of environmental and financial benefits to the healthcare industry. Many hospitals apply for the LEED certification that would make sure the safety of the environment. In fact, many experts consider CSR activities an important and significant department for hospitals.
Conclusion: Healthcare Industry PESTLE Analysis Example Company
After an in-depth study of pestle analysis of healthcare industry; we have realized that the healthcare industry plays an important role in the welfare of society. If you are learning about the impact of the external environment on the healthcare industry, then you should keep in mind the abovementioned external political, economical, social, technological, legal, and environmental factors impacting the company.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
