How Economics Impact the Strategy and Future of Healthcare Organization

Summative Assessment Economic and Market Impact Report
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Summative Assessment Economic and Market Impact Report
Introduction
For every company, there is always a need to take some time and assess its overall performance and its overall standing within the business and industry environment. This often helps to determine the weaknesses and possible options at hand, which the company can use in pursuit of self-improvement. A company's SWOT analysis showcases the key strengths, weaknesses, opportunities, and threats the company will likely experience. Conducting a proper SWOT analysis enables the organization to determine its strategic goals and have a clear plan to strive to achieve those goals (Teoli et al., 2019). This is because it gives an actual and honest report about the standing of the company. This summative report will entail analyzing the economic trends in the market likely to affect East Chestnut Regional Healthcare Organization, the impact of economic trends on the strategic goals of the organization, the current opportunities and threats in the market, the influence of the organization on the economics in the area and a conclusion section that summarizes the main points of the report.
Economic Trends in The Market
The economics of the market are crucially important in determining a healthcare institution's overall performance and sustainability (Singhal, 2020). In this scenario, East Chestnut Regional Healthcare Organization is affected by tough economic times. One of the ongoing economic trends in the healthcare market includes the increased cost of healthcare. Over the past several years, the cost of medication has steadily been on the rise due to a combination of factors. The operational costs within the hospital and medical equipment are increasingly rising due to increased ongoing inflation. Additionally, there seems to be a general lack of proper policies to shield against the same. Therefore, the hospital needs to make a set of adjustments to take care of these costs. As a result, the hospital charges a lot higher for Medicare. Assessing healthcare has become an expensive venture for most patients due to the costs involved. The patients increasingly lack enough capitalization to attend the hospitals, which consequently affects the healthcare's profit levels. Equally, the hospital incurs increased economic costs associated with aging medical practitioners. This personnel will eventually need to be replaced, meaning that there will be a need for some budget set aside for the same. The need to hire more personnel will result in increased patient costs within the facility, affecting the patients’ ability to afford it and consequently affecting the hospital's profit levels.
Another economic trend affecting East Chestnut Regional Healthcare Organization is the shift of mental health patients and surgical patients to other healthcare organizations. East Chestnut Regional Healthcare Organization is currently closing down its mental health center, and the surgical unit does not have the capacity to operate. These issues affect the economics of the hospital and its ability to be economically sustainable. Just like in any organization, some departments might become economically unproductive and hence unsustainable as they only end up stretching the organization and cause significant inefficiency. The options in such a situation are to either do a complete overhaul of such departments, which might cost the organization, or simply shut them down. It, therefore, looks easier to shut it down than to revamp. Even though this might be the best alternative, the hospital management must look into these economic issues and devise ways to continue generating good profits to sustain the hospital. Financial reimbursements are also another economic trend. Patients will always ask to be refunded whenever they incur a cost they were not supposed to. Customers are now more aware of healthcare regulations, and whenever they are not followed, they request reimbursements which are increasingly affecting East Chestnut Regional Healthcare Organization.
Impact of Economic Trends on Strategic Goals
Strategic goals showcase the visionary objectives of the company. The management of East Chestnut Regional Healthcare Organization needs to analyze the likely impacts of changing economic ...