HCM FPX 5312 Assessment 1

Analyzing the Impact of the External Environment on an Organization 

Organization Overview 

Appalachian Regional Healthcare System is a not-for-profit healthcare system that cares for nearly 400,000 residents of Eastern Kentucky and Southern West Virginia. One of the largest healthcare providers in this region, it has three hospitals and thirteen medical practices and is now the largest healthcare provider in Eastern Kentucky and the third-largest in Southern West Virginia. With a workforce of 500 employees and 600 active medical personnel, the organization is leading in addressing the health care needs of the region’s population (Dignan et al., 2022). The government of America has subsidized rural hospitals for decades through a number of initiatives that have been aimed at direct subsidization and hiring staff. But gaps are still present in the understanding of the changes that are happening within healthcare, specifically in regard to their long-term effects. This article tries to set and address the long-term shifts in development that have affected the organization, specifically in reference to its external environment. It should be noted that the history of the Appalachian region includes a rural health program implemented by a coal mine worker union in the early 1950s and backed by many high-grade hospitals during that time (Figinski & Troland, 2021). The purpose of this article is to make some observations on rural healthcare programs, including a PESTLE analysis, and identify the challenges and opportunities faced by the organization. A brief consideration of the impact of the external environment on the organization is also included.

Challenges and Opportunities Faced by the Organization 

The Appalachian Regional Healthcare System is faced with numerous challenges in the provision of healthcare services to residents in rural areas. Some of the key areas involve access to healthcare services with geographical distances and the lack of sufficient awareness regarding care strategies (Hirko et al., 2020).

Conversely, programs such as telehealth technology integration present potential avenues toward enhancing health outcomes. The second major challenge lies in creating awareness among rural populations, and this calls for education programs and lobbying for healthcare interventions (Coughlin et al., 2019).

HCM FPX 5312 Assessment 1:PESTLE Analysis 

The PESTLE framework—Political, Economic, Social, Technological, Legal, and Environmental—is employed using a framework to identify and evaluate external influences that impact an organization (Cox, 2020).

The tool serves to enable organizations to analyze their performance and gauge their advancement (Cooper, 2020).

The following table shows the PESTLE analysis of the Appalachian Regional Healthcare System and its rural health consequences.

Political Factors

Political factors, such as insurance policies, tax rules, and consumer protection rules, affect rural healthcare. For example, tax policy reforms may improve the Appalachian Regional Healthcare System’s capacity to build rural healthcare. Government stability may appeal to investors willing to invest in rural health projects, while higher regulation of healthcare organizations may enhance equitable competition, resulting in enhanced rural healthcare (Smarandache et al., n.d.). 

Economic Factors

Economic factors such as unemployment and inflation have a major impact on the Appalachian Regional Healthcare System. Interest and consumer spending patterns affect the ability of the organization to fund rural health projects. Steady changes in inflation rates, as opposed to sudden jumps, can favor the organization to allow efficient adjustments. High inflation reduces disposable income and consumer confidence, but lower inflation increases disposable income and could trigger price competition (Smarandache, 2022). 

Social Factors

Hiring younger staff members within the Appalachian Regional Healthcare System can have a positive impact on rural healthcare development. Younger workers bring fresh and creative abilities that can improve healthcare services.

Another key social factor is education; greater healthcare awareness among people in rural areas can lead to enhanced health outcomes. Good communication among different organizations is important in developing rural healthcare strategies and enhancing access to care (Matović, 2020). 

Technological Factors

Technology plays a central role in improving the delivery of healthcare. In rural areas, technologies such as telehealth can enhance access to care and reduce medical errors. Telehealth can also decrease the economic cost of transportation to healthcare centers, promoting increased and effective interaction between patients and providers. Furthermore, social media can be a great tool for promoting awareness of rural healthcare challenges (Thakur, 2021). The Appalachian Regional Healthcare System may also gain from technological advancements in data handling and outreach programs for rural populations.

Environmental Factors 

The organization should remain responsive to environmental factors, as they can affect individuals and healthcare facilities. Through an emphasis on rural health issues, the organization will be able to encourage other players to get involved in tackling such problems. Awareness of rural health issues can build cooperation and advancements in healthcare planning (Pan et al., 2019).

Legal Factors 

Legal factors, including laws and regulations, play an important role in influencing the Appalachian Regional Healthcare System. Most rural communities have uninsured and immigrant populations; therefore, legislation that provides for equal access to healthcare can contribute positively to the organization.

Legal frameworks are fundamental in ensuring non-discriminatory care for rural populations (Çitilci & Akbalık, 2020).

External Healthcare Factors’ Impact on Healthcare Organizations 

Approximately 15% of America’s population resides in rural environments, which makes it very difficult for healthcare centers like the Appalachian Regional Healthcare System to provide decent care to people residing in the rural areas.

Rural populations are typically characterized by limited healthcare facility access, and the majority are uninsured and elderly, with predominantly chronic diseases.

Among the biggest challenges for this organization is awareness creation and educating rural dwellers on effective healthcare practices (Ferreira et al., 2020).

Despite these challenges, technology and awareness campaigns provide scope for improving rural healthcare (Pietromonaco & Overall, 2020). 

Conclusion 

The Appalachian Regional Healthcare System aims to enhance the quality and availability of healthcare in rural areas; however, it is fraught with challenges and opportunities. Utilizing the PESTLE model provides explicit understanding of learning about the external factors that affect the performance of the organization.