PESTLE Analysis of Hospital Industry in Australia

This report focuses on the political, social, economic, technological and legal factors of the hospital industry in Australia. It helps in assessing all the positive and negative external factors which impact the health care organization. The report includes a comprehensive and rigorous PESTLE analysis of the hospital and health care industry in Australia.

RUNNING HEAD: Strategic cost management 1
Name of the student-
Topic- Strategic Cost Management
University Name-

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Executive summary-
With the increasing ramification of the economic changes, working process of the health
care organizations, each and every health care organization is inclined towards adopting advance
technologies and system in their business process. In this research, hospitality industries of
Australia have been taken into consideration. This report focuses on the political, social,
economic, technological and legal factors of the hospital industry. After analyzing the PESTLE
analysis of the hospital industry, the main outcome is related to the effective health care and
service program implemented by the hospitals and public health care organization in health care
industry. In this research, data has been collected from the government statistical, and official
gazettes. The comprehensive and rigorous PESTLE analysis of the hospital and health care
industry has been taken into consideration in this report. It helps in assessing all the positive and
negative external factors which impact the health care organization.

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Table of Contents
Executive summary-....................................................................................................................................2
Introduction-................................................................................................................................................4
Description of the business..........................................................................................................................4
The vision of Concord Hospital....................................................................................................................4
The mission of Concord Hospital.................................................................................................................5
Core values of the organization...............................................................................................................5
Research Analysis.......................................................................................................................................5
PESTEL analysis of Hospital industry in Australia.....................................................................................6
Recommendation.........................................................................................................................................9
Conclusion.................................................................................................................................................11
Referencing-..............................................................................................................................................12
Appendix...................................................................................................................................................14

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Introduction-
Each and every organization needs to take proper action plan and strategies to operate
there in the market. The main problem which patients are facing in Australia is related to the
high-cost health care services. With the changes in technologies and patients care services
program, patients have to pay the high amount of payment for the treatment of their diseases and
ill-ness. Therefore, it could be evaluated that if hospital and health care organization wants to
achieve success in the market then it will have to make effective strategic management cost
program. It will assist health care organization to reduce the fees and charges for health care
services. This report emphasis upon the PESTLE analysis of the hospital industry. It will assist
the researcher to identify all the influencing factors which may, directly and indirectly, impact
the policies and health care services program of the health care organization. The Australian
hospital industry has gained momentum throughout the time with the increasing number of the
health issues and diseases faced by the people in Australia. The comprehensive and rigorous
PESTLE analysis of the hospital industry will divulge all the positive and negative factors of the
economy, legal condition, environment, technological changes and social values of the people
who live in Australia.
Description of the business
Concord Hospital is the charitable organization which indulged in meeting the health
need of the patients with the communities in which it serves. It especially provides treatment of
many diseases to their patients such as undertaking various surgeries, emergency services.
radiation treatments and rehabilitation services. It is an acute-care hospital located in Concord,
New Hampshire. It consists of more than 245 primary and specialty providers specially trained in
subspecialties. This hospital has adopted stewarding technology and cultivating progress for the
patient’s cares and their treatments.
The vision of Concord Hospital
The vision statement of Concord Hospital is to develop its health care program to become
an acute-care hospital and become the best health care organization for the treatment of

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undertaking various surgeries, emergency services, radiation treatments and rehabilitation
services.
The mission of Concord Hospital
The mission of the company is supported by Concord Hospital Trust, the philanthropy
arm, which focuses and distributes charitable gifts in accordance with the donor's intents.
Concord Hospital has the mission to deliver best quality patient's care services for the better
treatment of the patients.
Core values of the organization
The core value of the Concord Hospital is based on stewarding technology and
cultivating progress for the patient’s cares and their treatments to render best patients care
services for the patients in Australia (Chiswell, Cooper, and Packham, 2015).
Research Analysis
`With the changes in the globalized world, competition in the hospital industry has been
increasing throughout the time. All the health care organizations are focusing on increasing the
value of their health care services by adopting advance technologies and machines for the health
care treatments. After analyzing all the details, it could be inferred that general health care
organization and hospitals are growing with the drastic rate. Nonetheless, with the government
intervention and support, the half of the funding of these hospitals are made by the government
and authorized state bodies in Australia. There is the new concept in the Australia that people are
more inclined towards taking membership and annual medical programs from the private
hospitals due to the advance and effective health care services offered by these private health
care hospitals (Chung, et al. 2016).
However, the overall total revenue of the health care industry has increased t $52.9 billion which
is average 20% higher as compared to last five year data (Elango, & Govindasamy, 2018).
There are several new features have been adopted by the private health care hospitals to
increase the satisfaction level of the patients and their better treatments such as the arrangement

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of the international supporting treatment machines for patients, installation of the new cyber
computing system for the data storage of the patients and effective communication among the
concerned persons. All the big private hospitals arrange cafeteria, ATM machines, Wi-Fi
services, the financial support program for the needy patients and moral support. All the big
hospitals in Australia have adapted to the international healthcare organization framework to
provide the best quality of health care treatment to patients. As per the government statistical
data, patients in Australia grasped 20% higher health care services as compared to the
international health care services (Elango, and Govindasamy, 2018).
PESTEL analysis of Hospital industry in Australia
This PESTLE analysis implemented to evaluate all the external factors such as political,
social, economic, technological and legal factors in which organization has been running their
business (Etienne, et al. 2014).
Political factors
This factor reveals the government type, stability, regulation and de-regulation trend, tax policy
and likely changes in the political environment. In Australia, the supply of goods and services is
controlled by the government. However, as per the health department regulation act, all the
health care organization and hospitals are required to take the hospital licenses from the
Queensland Health private hospital regulatory units. This unit is authorized to issue licenses as
per the government policy in references to the level of intervention in the country. In addition to
this, the political environment of Australia is very stable and liberal- capitalistic democracy.
However, parliament decides on the consistent basis all the applicable taxes and traits which
need to be paid by the hospitals in Australia (Chiang, et al. . 2018). There are several ways
through which government intervene the operational functions of the hospital such as imposing
tariffs, subsidies, currency control, Anti-dumping rules, free trade zones and administrative
policies. Nonetheless, as per the government rules and regulation, Concord hospital has been
indulged in providing 24*7 hours health care services for the better treatment of the people.
Therefore, all the policies and regulation issued by the government should be taken into

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consideration by the hospitals before implementing the health treatment program (Fritsch, et al.
2018).
Technological factors
The technological factor highly influences the health care services and treatment. It is
analyzed that each and every hospital needs to adopt advanced technologies and system to treat
the patients with their healthcare issues. However, in hospitals, the main focus should be to keep
the patient's data confidential and establish effective communication. Therefore, the first focus
should be to make the confidentiality, safety and secure the gathered data. In addition to this,
adopted stewarding technology and cultivating progress for the patient's cares and their
treatments accompanied with the cyber psychology and advanced infrastructure of technology
parallel program will increase the overall effectiveness of the health care treatment program.
Most of the healthcare organization such as Royal Adelaide Hospital, Melbourne hospital is
indulged in adopting the advanced technologies and importing international health treat care
machines for the better treatment of the patients (Beserra, et al. 2017). The main focus of
importing advance healthcare treatment machines is to set up health care services for increasing
the value of the patients care. All the hospitals in hospital industry need to focus on installing
advance cyber computing technologies to keep the healthcare data online safe and secure
(Mueller, Wright, and Bolch, 2018).
Environmental
The environmental factor focuses on the ecological environment which may impact the
business functioning of the organization. This focuses on the keeping the environment safe and
non-affected by the operational activities of the hospitals. It is observed that due to the
operational functioning of the hospitals, there are several impacts have been seen such as damage
to the climate, water wastage, energy wastage. Therefore, department of the environment
protection Australia has issued policies and regulations for conversation of the wastage resources
and maintaining the clean environment. Australia has the dry climate which may result in the
increased number of Patients. The proper care and policies should be followed by the hospitals to
keep the environment clean and proper safety procedure would need to be used while handling
any hazardous substance in the hospital premises (Rahman, et al. 2018).
Social

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It put emphasis upon the values, belief, and perception of the patients for the hospital and
healthcare organization. It is observed that with a view to providing best quality patient's care
services, stewarding technology and cultivating progress for the patient's cares and their
treatments accompanied with the cyber psychology and advanced infrastructure of technology
has been adopted by the hospitals in Australia. It has developed its mission frameworks for
providing health care treatment and maintained strong health care process. These social factors
highly influence the business functioning of the hospitals. It is observed that all the healthcare
treatment and services offered by the hospitals should be mold as per the patient’s needs and
care. It is analyzed that people in Australia are less concerned about the price or fees charged by
the health care service department. It is observed that all the hospitals and healthcare services
organization needs to focus on increasing the quality of the patient care services by installing
highly advance machines for the patient's treatment. The customization of the health care
services as per the needs and demand of patients will increase the overall value and increase the
outcomes of the organization at large (Rani, and Chandrasekharan, 2018).
Economical
After analyzing the Australian data and statistical report, it is found that the overall GDP
per capital of Australia is 49,927.82 USD (2016). The growth rate of the GDP of the country is
2.8% which is positive indicators and reflects that standard of living and purchasing power of the
people in Australia has increased with the drastic rate. The public health care industry has the
overall turnover of $ 192.26 billion in 2016 which has the partition of 5% of the overall GDP of
Australia (Salmani, et al. 2018). This figure shows that patients in Australia could arrange the
capital on their own for their own treatment. However, subsidiaries and government intervention
would be given to only those patients who fall under the specified list. The government of
Australia has contributed $ 44.4 billion capital for the benefits and support of the patients care
treatment. This economic condition of Australia has shown that purchasing power of the patients
have increased and the government is also putting efforts to provide support to the patients by
providing them funding for their treatments. As per the statistical data, many patients who are
falling under the certain group are exempt to pay taxes on their health care treatment and can
also apply for the medical care support from the government (Shtal, et al. 2018).
Legal factors

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It is observed that the legal compliance and health care laws in Australia are very tough.
Australia's business law is flexible but the laws implemented for the patients care treatment is
tough. However, all the hospitals need to comply with the corporate tax, good and service tax,
capital gain tax and other business taxes and traits rules. There are several laws regarding the
import and export of drugs and machines which also need to be compiled by the Australian
hospitals. The legal factor shows the legal compliance and applicable rules which need to be
followed by each and every healthcare organization in the industry. However, healthcare
department has issued notification for the healthcare organization to keep their quality of
services and provide the best suitable health care services in the best interest of the patients. In
addition to this, with the use of advanced technologies in data collection program, each and
every healthcare organization needs to protect the patient's privacy through the anti-theft cyber
program (Campbell, 2017). There are several legal laws issued by the Commissioner's Pound
Road Medical Centre for the privacy of the data records of the patients which should be
compiled by the healthcare organization. This legal factor has revealed that hospitals need to
comply with the all the domestic rules and laws to avoid the penalties and losses arise from using
hazardous drugs and program (Song, Wang, and Zhu, 2018).
Recommendation
There are several recommendations which need to be undertaken by the hospitals in
Australia improving its health care services and treatment for the patients. These
recommendations are given with the view to improve the existing health care program of the
hospital and improve the patients care services in determined approach.
 Reforming the health care delivery system to improve the existing quality and value of
the care. It will also have to set up mechanism in its existing work framework to address
the escalation raised by patients and poor treatment process (Boyes, and Aylott2017).
 There should be proper policies and program developed by hospitals to reduce the cases
of increases errors in operational functions and less effective patients care program in the
hospital’s premises (Teoh, et al. 2018).
 All the hospitals in Australia need to hire well-trained staff members and doctors who
could provide 24*7 hours services for the better patients care and treatment.

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 Ensuring that their health care practices developed as the shared patient-centered mission
that all the senior leaders and management articulate to promote staff to an
implementation of the high-quality patient care services.
 Development and implementation of the policies and procedure for involving patients,
families, cares, and patients at a service level. They also need to improve the quality of
the work program and safety initiatives for the healthcare design.
 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.
 Setting new norms and protocol for the better and efficient management of the hospital
and service program(Upadhyayula, et al. 2018).
 Setting of new norms and care services to provide support to enable staff to partner with
the patients and consumer to implement any required changes to make health care
services better and effective.
 Installation of the cyber system to set up automation in several operational functions and
increase the effectiveness of the communication methods.
 Follow all the rules and policies which are established by the health care department of
Australia
 Setting new organization culture and health care services program as per the patient’s
care and services.
 Entering into a strategic alliance with the other hospitals and care center to expand its
patients care services and improving its existing health care program.
 The hiring of experts doctors and arrangement of proper HRM system with a view to
easy availability of staff and doctors for the clients.
 Separation for the operation and functional departments in Hospitals to ease the care
services program.

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Conclusion
After analyzing all the external factors of the hospital industry, it could be inferred that
each and every organization needs to make effective use of resources and government policies to
make improvisation in their existing business functioning. It is observed that healthcare
organization needs to install advance machines and system to increase the overall value of the
patients care services. It is analyzed that people in Australia are more inclined to grab best
possible treatment for their illness and diseases irrespective of the price and fees charged by the
hospitals. Now, in the end, it could be inferred that Australian economy is very liberal and
government policies and rules implemented promote the hospitals to strengthen their work
functions and increase the quality of their health service. However, it is required to adopt
possible health care program and effective patient care services if hospitals want to adapt to
international patient care and services for the better patient care treatment.

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Appendix
Source: http://www.hha.org.au/LatestNationalData/national-data-for-2014.aspx

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Source: http://www.publish.csiro.au/ah/Fulltext/ah16034
Source: http://www.ncoa.gov.au/report/appendix-vol-1/9-3-pathway-to-reforming-health-care.html