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What types of changes are likely to occur in health care environment in the next several years? There are a multitude of changes that are may occur in the new future with may include legislative/political changes, economic changes, social/demographic changes, technological changes, and competitive changes.

On the legislative/political changes, the current health are reform taking place in the United States will decrease the number Of uninsured and guarantee that no individual will be denied coverage or dropped from their insurance plan if they have a pre-existing illness. As for the economic changes, there might be an increase in premiums since the risk pools now include more Americans who were too sick to purchase health insurance previously. The demographic changes of the baby boomer generation may place a burden on the current system to produce for geriatric physicians as well as nurses.

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Advancement in technology will make it possible o extend a life as well as save cases that were deemed impossible just a few decades ago. More emphasis will also be put on automation of business processes and diagnostic technology. On the competitive front, the rural health care system will have to be reconfigured as small town populations are declining and the shift of health care priorities will shift to preventive care instead of tertiary care. Why is environmental analysis important for an organization?

Environmental analysis is important for an organization because it is a measure to prevent surprises from the external environment that may affect the organization costively or negatively. External environment analysis “attempts to identify, aggregate, and interpret environmental issues as well as provide information for the analysis of the internal environment and the development of the directional strategies” (Sweeney, Duncan, & Ginger, 2010). If possible changes are predicted ahead of time, the organization can put into place measures for handling it in an efficient and effective manner.

Having a good plan in place might also increase profits for the organization. Describe the “setting” for health care management. Is the setting too complex r changing to rapidly to accurately predict future conditions? The health care environment includes groups that consists Of organizations that regulate primary and secondary providers, provide health services, provide resources for the health care system, and those who are the consumers of health care services (Sweeney, Duncan, & Ginger).

It is an extremely complex environment because organizations and individuals in it develop and employee new technology, deal with changing social and demographic issues, address legislative and political change, compete with other health care organizations, and participate in the health care economy. Even though environmental analysis doesn’t guarantee that everything will turn out as predicted, it encourages managers to adopt news ideas in the system, maintain receptivity to new ways of doing things, and expose themselves to broad views. What are the specific goals of environmental analysis?

Goals of environmental analysis are: to identify and analyze current important issues and changes that will affect the organization to detect and analyze early or weak signals of emerging issues and changes that will affect the organization to speculate on the likely future issues and changes that will have significant impact on the organization to classify and order issue and changes generated by outside organizations to provide organized information for the development of the organization’s internal analysis, mission, vision, values, goals, and strategy to foster further strategic thinking throughout the organization What are the limitations of environmental analysis? Given these limitations, is environmental analysis worth the effort required? Why?

Limitations include: environmental analysis cannot foretell the future managers can not see everything sometimes pertinent and timely information is difficult or impossible to obtain there may be delays between the occurrence of external events and management’s ability to interpret them sometimes there is a general inability on the part of the organization to respond quickly enough to take advantage of the issue detected managers’ strongly held beliefs sometimes inhibit them from detecting issues or interpreting them rationally Despite of its limitations, environmental analysis gives the organization a direction it otherwise wouldn’t have. In addition to this, when the analysis is correct, it could give the organization a leg up against its competitors and stay ahead of the game”. What four processes are involved in environmental analysis? What are their suppresses?

Scanning the environment: view external environmental data organize external information into several desired categories identify issues within each category Monitoring the external environment research and identifies additional sources of information for specific issues add to the environmental to the organization attempts to confirm or disprove issues (trends, developments, dilemmas, and possibility of events) attempts to determine the rate of change within issues Forecasting environmental change extend the issues (trends, developments, dilemmas, or occurrences of an event) Identify the interrelationships between the issues and environmental categories developing alternative projections.

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