PESTEL analysis in healthcare is an important part of strategic management for any organization in the field. Besides, it is an economic tool to scan the environment. It helps to detect factors influencing the industry and activities of companies (Ho, 2014). As a result of considering such effects, businesses can plan strategies to take advantage of the situation. They can also mitigate and prevent negative impacts. This tool is not only very useful for strategic planning in economics, but in any sphere of life, with every person or entity being affected by the environment. Therefore, to complete, write, and use PESTEL analysis in healthcare, it is necessary to take the following steps.

1. What is the PESTEL framework

The acronym stands for the following factors enumerated and discussed below:

• Political,
• Economic,
• Social or sociocultural,
• Technological,
• Environmental,
• Legal.

However, there are different variations of this tool. Specifically, it can include the first 4 factors (PEST) only. You may also find ethical perspectives instead of environmental ones (Ho, 2014). It is also possible to come across the PESTLE framework. It involves the same factors, but in different order. In fact, this tool can be part of environmental scanning in combination with SWOT analysis. Considering the latter, opportunities and threats stand for the external environment. Strengths and weaknesses are internal factors. You can use a free template below.

2. Examples of PESTEL analysis in healthcare

To write this analysis, include the following parts.

Introduction

The first paragraph should introduce the field, business, or organization under analysis. Are its present strategies or situation sustainable, profitable, or stable? Does it need strategic management changes? Provide some interesting facts or statisctics, serving as a hook to attract reader’s attention.

Headings for PESTEL

Furthermore, include Level 1 heading for the acronym. In addition, use Level 2 headings or subheadings for each factor, ordered based on the PESTEL framework.

Political Factors

Here, the healthcare industry serves as an example. Particularly, political factors affect this field and healthcare costs directly. These consist in healthcare reforms and insurance coverage. In addition, consider policies on governmental spending and staffing, Medicare and Medicaid.

Economic Factors

When focusing on economic effects, take into account that unemployment and inflation impact the population’s ability to have insurance covers and spend on healthcare. Therefore, these factors directly affect the performance of healthcare organizations and other companies involved in the industry.

Sociocultural Factors

In addition, cultural beliefs and values of people directly impact their involvement in healthcare services. Particularly, some cultures prefer traditional approaches. Others resort to alternative medicine or herbal treatment.

Technological Factors

Furthermore, the development of new technological solutions may turn costly to healthcare organizations. It directly affects healthcare costs. In addition, healthcare facilities will need to focus on training the staff how to use implemented technologies.

Environmental Concerns

Healthcare organizations should constantly improve their methods of disposing waste. Specifically, the aim is to meet population’s concerns about the environment. Therefore, they should include such measures into strategic planning.

Legal Factors

Finally, in this part, it is necessary to outline taxation laws as factors that affect healthcare organizations. Particularly, the latter should comply with the respective regulations governing the industry. Enumerate these factors in this part.

Conclusion

Finally, this part should summarize your findings concerning PESTEL analysis in healthcare. In addition, based on this, provide recommendations on strategies to be adjusted to the factors above and present crucial strategies as part of strategic planning or strategic management.

Reference

Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European Academic Research, 2(5), 6478-6492. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.433.5631&rep=rep1&type=pdf