General and Health Care Environment

Topics: Health care, Health economics, Medicine Pages: 3 (900 words) Published: September 27, 2010
Chapter 2: Understanding and Analyzing the General Environment and the Health Care Environment
20 points
Questions to be answered for Chapter 2 are listed below. Please type below the question. Once completed with the assignment, submit to the appropriate Dropbox in D2L. What types of changes are likely to occur in health care environment in the next several years? There are a multitude of changes that are may occur in the new future with may include legislative/political changes, economic changes, social/demographic changes, technological changes, and competitive changes. On the legislative/political changes, the current health care reform taking place in the United States will decrease the number of uninsured and guarantee that no individual will be denied coverage or dropped from their insurance plan if they have a pre-existing illness. As for the economic changes, there might be an increase in premiums since the risk pools now include more Americans who were too sick to purchase health insurance previously. The demographic changes of the baby boomer generation may place a burden on the current system to produce for geriatric physicians as well as nurses. Advancement in technology will make it possible to extend a life as well as save cases that were deemed impossible just a few decades ago. More emphasis will also be put on automation of business processes and diagnostic technology. On the competitive front, the rural health care system will have to be reconfigured as small town populations are declining and the shift of health care priorities will shift to preventive care instead of tertiary care.

Why is environmental analysis important for an organization? Environmental analysis is important for an organization because it is a measure to prevent surprises from the external environment that may affect the organization positively or negatively. External environment analysis “attempts to identify, aggregate, and interpret environmental issues as well as...
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