Directional strategy

Telehealth organization

Miatta Teasley

Capella University

MHA-FPX5010 Strategic Health Care Planning

Professor Chad Moretz

December 1, ,2022

Introduction

Telehealth uses digital information and communication technology to provide healthcare remotely. Technologies include computers, tablets, and smartphones technology at home. A nurse or other medical professional may provide Telehealth in outlying areas out of a clinic or mobile van (Qian et al., 2021). Telehealth is a tool that doctors may use to supplement or improve care. Telehealth organizations utilize telecommunications and digital communication technology to provide medicinal care, worker and patient schooling, health evidence facilities, and self-care. Animate film conferencing, smartphone apps, "save and forward" electronic broadcast, and RPM are all used in Telehealth. Digital involvement and follow-up may enhance patient quality of life and treatment outcomes. Telehealth may reduce the risk of infection and enhance patient evaluation. Healthcare expenses could be immediately reduced by Telehealth (Qian et al., 2021). Cut back on patient travel and transportation expenses. A telemedicine consultation could replace a hospital visit or stay. Numerous procedures and programs might be economical. Technology may make it easier for more people to access healthcare. Telehealth could enhance coordination, efficiency, and home care.

Telemedicine PESTEL Analysis

PESTEL, which emphasizes the market's Political, Economic, Social, Technological, Environmental, and Legal environment, would be used to assess the external setting of the telehealth organization. In contrast, Porter's Five Pressures would be used to assess the market's competitiveness (DeSilva & Vaidya, 2021). PESTEL is an acronym for the market's Political, Economic, Social, Technological, Environmental, and Legal environment. industry dynamics like the negotiating power of buyers and distributors, the risk posed by new participants, and replacements are highlighted to gain a better understanding of competition.

a) Political factors

The growth of the telehealth industry has been significantly influenced by several political factors, including the creation of institutions dedicated to innovation, the advancement of technological capabilities, and the cultivation of human resource capacity (DeSilva & Vaidya, 2021). In 1990, the government initiated a strategy with a duration of five years to promote submicron innovation. One component of this strategy was the development of submicron research labs.

b) Economic factors

The only significant financial challenge in the telehealth industry is not caused by demand and supply imbalances. The below-average prices and the market's excess supply have created a concern for the providers' cash flow. Economic turmoil may bring the industry's production down to a lower standard (DeSilva & Vaidya, 2021). Increased output due to performance improvements may cause an economic downturn due to excess supply and weak demand, leading to the closure of businesses due to low profitability. Such may be the case if the supply exceeds the demand. Between 1991 and 2007, the market for telehealth services went through three economic crises due to an excessive supply and a lack of revenues (DeSilva & Vaidya, 2021). This hints that there is a high possibility of another one in the future.

c) Social factors

The government has primarily emphasized enhancing human funding through implementing training that increases resource knowledge (DeSilva & Vaidya, 2021). The fact that it is the only industry in the world to develop labour divisions fully is evidence that social measures have been taken to improve the market's reputation and overall quality.

d) Technological factors

Because telehealth producers do not possess their technology, they are forced to rely on foreign technical partners, which results in the market still having technological challenges. The participation of the government in telehealth services is being undertaken to reduce this reliance (DeSilva & Vaidya, 2021). The fact that other countries governments cannot innovate is one of the limitations of this system.

e) Environmental factors

The rapid capacity expansion in the telehealth sector is evidence that the United States is an especially advantageous location for manufacturing related to Telehealth (DeSilva & Vaidya, 2021). This monitoring is made even more important by the area's potential for industrial use.

f) Legal factors

The legal framework of the telehealth industry includes intellectual property rights and legal agreements, which carry with it both opportunities and challenges. If a company's copyright (also known as intellectual property), handling, and inventions are all legally protected, then the company may be more reliable (DeSilva & Vaidya, 2021). The potential lack of interest in telemedicine on the part of Micron due to a legal contract is evidence of how highly valued legal contracts are in the telehealth industry.

Vision, purpose, and values represent the Telehealth organization's directional initiatives.

The mission, vision, values, and objectives are all included in the directives. Using a network of volunteer medical professionals and innovative technology, Telehealth can deliver high-quality medical care to some of the world's poorest and most medically underserved communities (Donner et al., 2021). Such helps to increase the local community's capacity and provide essential health services. Because of the expansion of the Telehealth group, all residents of South Carolina will have access to medical care. Still, those who live in underserved and rural areas will benefit the most. It will advance trustworthy medical care centered on the patient and delivered promptly, in addition to research and education (Donner et al., 2021). The company will earn a good reputation for providing telehealth services that are collaborative, practical, and cost-effective.

Increasing the number of telehealth healthcare initiatives is one of the ways that service development works to expand access to medical care. Expanding access to Telehealth and mental health initiatives and services is one of the company's primary focuses. The group also informs and educates members of the general public and healthcare professionals to boost Telehealth's adoption (Donner et al., 2021). Cooperation between organizations that provide health care, education, and research helps make collaboration possible and strengthens existing relationships. The organization illustrates Telehealth's advantages by presenting its work results. Through promotion and long-term sustainability, the organization demonstrates Telehealth's positive effects on access, quality, and cost.

Competition Forces

One of the many components that go into the definition of Telehealth is providing medical care through the Internet. Professionals in the healthcare industry are researching different healthcare delivery models, seeking second opinions, and gathering evidence-based consumer information online (Rashvand & Hsiao, 2018). Patients use the Internet to educate themselves about healthy lifestyle choices, as evidenced by the frequency with which they visit their physicians. In light of the proliferation and variety of healthcare initiatives, it is essential to investigate the factors that contribute to the success of Telehealth and the forces that shape them.

The first step is to understand the traditional competitive forces present in all industries and how the Internet as a disruptive technology has affected these forces to understand the competitive forces present in any e-health endeavor. Accessibility, quality, and value are the three pillars on which modern telehealth companies are built (Rashvand & Hsiao, 2018). It is necessary to have a solid understanding of this value proposition for healthcare. Strategic management aims to achieve a "fit" between an organization and its environment, resulting in the highest possible level of performance. The organizational strategy and goals have to have technical support or enhancement (Rashvand & Hsiao, 2018). Such is especially true for companies actively operating in the twenty-first century, as the core operations and activities rely heavily on technology, information, and knowledge.

Telehealth organizations perform an in-depth market analysis before they formulate a plan. The Porter Five Forces model is useful. Microeconomic principles make up five of the fundamental drivers Porter has modelled as being responsible for explaining competitive laws and industry attractiveness (Rashvand & Hsiao, 2018). When a new competitor enters the market, it initially threatens the market share held by established companies. Second, a replacement could take customers away from a company's goods or services. Third, compared to businesses, buyers' or buyer groups' power lies in their ability to negotiate better prices. Fourth, the ability of suppliers to bargain is determined by the strength of their position compared to other companies in the industry.

Lastly, the current competition considers the relative positions of the major competitors and their market shares. By affecting prices, costs, and capital investment, the potency of these five forces determines Telehealth's attractiveness and potential for superior financial performance (Rashvand & Hsiao, 2018). After conducting a comprehensive analysis of the market, the company may conclude that one generic strategy makes the most sense for the company and allows it to utilize the majority of its core competencies in the context in which it currently operates.

References

DeSilva, S., & Vaidya, S. S. (2021). The application of telemedicine to paediatric obesity: Lessons from the past decade. Telemedicine and e-Health, 27(2), 159–166. https://doi.org/10.1089/tmj.2019.0314

Donner, C. F., ZuWallack, R., & Nici, L. (2021). The role of telemedicine in extending and enhancing medical management of the patient with chronic obstructive pulmonary disease. Medicina, 57(7), 726. https://doi.org/10.3390/medicina57070726

Qian, L., Sy, L. S., Hong, V., Glenn, S. C., Ryan, D. S., Morrissette, K., Jacobsen, S. J., & Xu, S. (2021). Disparities in outpatient and telehealth visits during the COVID-19 pandemic in a large integrated health care organization: Retrospective Cohort Study (preprint). https://doi.org/10.2196/preprints.29959

Rashvand, H. F., & Hsiao, K.-F. (2018). Integrating telemedicine and telehealth—Advancing Health at a distance. Telemedicine and Electronic Medicine, 3–32. https://doi.org/10.1201/9781351229067-1