External Factors In Health Care

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Every industry has various factors surrounding it that affects the organizations that exist within. As long as those factors exist outside of the organization’s realm, they are labeled external factors. On the other hand, an organization may deal with certain events that occur within the organization which would be labeled as internal factors.
Before divulging into the relevant factors, it is crucial to cover the necessary identifying tools. There are two main tools that can identify external: Porter’s Five – Forces and the environmental scanning. The Porter’s Five – Forces focuses on the competitive environment surrounding the organization and involves five elements: new entrant threat, bargaining power of buyers and suppliers, threat of substitute products and intensity of rivalry in the industry (Dess, Lumpkin, Eisner & McNamara, 2016). Conversely, environmental scanning is an essential tool that involves the organization’s active approach towards observing and inspecting the external environment allowing the management team to formulate a forecast for the upcoming changes (Dess, Lumpkin, Eisner & McNamara, 2016). Any actively operating organization faces …show more content…
Of these factors, the top three are economic factors, new insurance regulations and technological involvement. These factors forced the Adventist Hospital group to join forces with The Alexian Brothers Hospitals to form the AMITA Health Group in 2015 (Cramer, 2016). The move allowed both hospitals withstand the external stressors impacting both institutes and join forces to provide better health care

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