Week 11 Discussion Response- Delivery of Healthcare

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PESTLE Analysis and Health Care Reform

Student’s Name

Course Name

Instructor’s Name

Institution

Date

PESTLE Analysis and Health Care Reform

One of the ongoing healthcare reform challenges affecting the healthcare system of the U.S is the ongoing move towards value-based healthcare (VBC) over the fee-for-service models. This reform will enhance quality, lower cost, and patient outcomes, as it will base reimbursement on performance as opposed to volume of services (American Hospital Association [AHA], n.d.).

A PESTLE analysis as an external, environmental analysis can be used to assess this reform. Politically, there are still efforts by federal initiatives to encourage value-based reimbursement by Medicare and Medicaid initiatives. Value-based care is an economical measure to manage the increased healthcare spending, but healthcare institutions should invest in infrastructural and human resource training in order to attain performance standards. Socially, VBC will help with better population health outcomes and deal with disparities through the focus on prevention and care coordination. Electronic health records and data analytics are important in effective implementation in terms of quality measure and patient outcomes. Regulatory and reporting regulations on reimbursement are complex and require organizations to adhere to the law. Value-based models could also decrease the number of avoidable tests and hospital re-hospitalizations, which lead to a higher efficient utilization of the healthcare resource (Frue, 2018).

Among all the six PESTLE factors, technology is probably the most influential factor in my future career as a healthcare administrator. To be successful in a value-based care model, administrators need to monitor the implementation of health information systems that facilitate data exchange, quality reporting, and outcome measurement (AHA, n.d.).

By examining healthcare reform within the context of a PESTLE analysis, it indicates a future healthcare delivery system is more responsible, data-based and patient-centered. As administrators will have to implement the changes in policies continuously and keep the balance between quality improvement and financial sustainability.

Access to care is one of the important social determinants of health that can be included in the analysis. Value-based care promotes preventive care and coordinated care to underserved patients, which may decrease health disparities and increase long-term health outcomes. The solution to this barrier of access supports the national initiatives to enhance population health and equity (National Institutes of Health [NIH], n.d.).

References

American Hospital Association. (n.d.). Health care delivery. https://www.aha.org

Frue, K. (2018, February 14). PEST analysis of the healthcare industry. PESTLE Analysis. https://pestleanalysis.com/pest-analysis-of-healthcare-industry/

National Institutes of Health. (n.d.). Health information. https://www.nih.gov/health-information