HCM FPX 5312 Assessment 2 Using Market Data to Understand the Healthcare Environment

Student Name

Capella University

HCM-FPX5312 Analyzing the Health Care Environment

Prof. Name

Date

PESTEL Analysis Continued:

In the ongoing examination of external factors impacting Kaiser Permanente’s pursuit of a competitive advantage within the highly contested healthcare sector, it remains crucial to delineate the key participants and stakeholders in the healthcare system. Understanding their roles is essential for addressing the myriad challenges that the organization encounters in realizing its objectives.

Within the healthcare system, patients are the primary customers seeking various forms of care across disciplines such as Emergency care, inpatient care, routine medical care, surgery, and participation in research. The diversity in the types of care sought creates a complex customer/patient care population, influencing decisions regarding external supply chains. For instance, the supply chain for outpatient clinics providing routine appointments differs from that for hospital locations offering emergency and intensive care. Additionally, the socioeconomic status of the population served significantly impacts the revenue models, with facilities in low socioeconomic areas dealing with Medicaid and government assistance, while those in high socioeconomic areas cater to private payers or direct contracts with KP through employers.

Despite Kaiser’s distinctive healthcare model, competition exists, with other healthcare systems striving to emulate a managed healthcare approach like KP’s. Competitors such as Sharp Medical Center of San Diego and Med Impact pose challenges, requiring Kaiser to adapt and maintain its competitive edge.

Kaiser Permanente’s core discipline involves delivering comprehensive healthcare services through a multidisciplinary managed healthcare system. However, the potential implementation of a government-led universal healthcare system poses a challenge. The organization is proactively addressing this by considering an expansion of its member base to include government-supplemented healthcare, potentially becoming a contracted health care system under the new regulation. This strategic shift, while essential for adaptation, carries the risk of compromising Kaiser’s competitive advantage.

Market Data Analysis:

Market data crucially informs decision-making processes and serves as a guide for predicting member additions, assessing healthcare costs, and shaping clinical and financial models. Enrolment and membership data, both collected internally and by government agencies, play a pivotal role in adapting to market dynamics. Kaiser’s evidence-based approach, accepting government programs when private contracts declined, exemplifies its adaptive strategy to maintain competitiveness.

While rich clinical and population-based data have historically fueled insights in healthcare, the collection and utilization of such data remain pivotal for Kaiser. Market data analysis involves understanding competitors, evaluating market strategies, and comparing services with other medical facilities like Sharp Memorial Medical Center of San Diego. By scrutinizing financial statistics, case mix indices, and revenue data, Kaiser can assess its competitive position, adapt to market changes, and potentially capitalize on government-led healthcare reforms.

References:

American Hospital Directory. (2018). Retrieved from https://www.ahd.com/

Beckham, D. (2016). 10 surprising keys to strategic thinking for health care CEOs. Hospitals and Health Networks. Retrieved from https://www.hhnmag.com/articles/7096-surprising-keys-to-strategic-thinking-for-health-care-ceos

HCM FPX 5312 Assessment 2 Using Market Data to Understand the Healthcare Environment

Institute of Medicine. (2010). Clinical data as the basic staple of health learning: creating and protecting a public good: Workshop summary. Institute of Medicine (US) Roundtable on Value & Science-Driven Health Care, Washington, DC: National Academies Press (US). Retrieved from https://www.ncbi.nlm.nih.gov/books/NBK54296/

PESTLE Analysis.com. (n.d.). What is PESTLE analysis? A tool for business analysis. Retrieved from http://pestleanalysis.com/what-is-pestle-analysis

RAND Health. (2018). The future of U.S. health care: Replace or revise the Affordable Care Act? Retrieved from https://www.rand.org/health/key-topics/health-policy/in-depth.html

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