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Internal and External Factors in Healthcare

In a paper, analyze the design of your organization. Describe the internal and external factors that have defined and shaped your organization in terms of its size, organizational structure, and processes. Has the demand for more accountability affected the behavior of your organization in any way?

Include a minimum of three references and follow APA format.

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Company Background

In 1963, a $50 million grant from the Milton S. Hershey Foundation and $21.3 million from the U.S. Public Health Service was offered to Penn State University to build a medical school, teaching hospital, and research center (PSHMC, 2010). Ground was broken in 1966 and PSHMC accepted its first patients in 1970 (PSHMC, 2010). "Since 1970, the campus has grown from 318 to 555 acres. Many additions have been made to the academic and patient-care facilities, which are components of the Penn State College of Medicine and the Penn State Children's Hospital" (Wikipedia, 2008, ¶ 2). The hospital employs than 8000 employees at a 542-bed hospital.

Environmental Analysis

Business and consumer groups, government regulators, and patients are pressuring today's healthcare organizations to lower costs, improve patient care and safety, and enhance services. The employees and information technology is the lifeblood behind the healthcare organization: creating, processing, analyzing, storing, protecting, retrieving, and communicating information to the end users (bNet, 2005).

Key Economic Factors

Key economic factors' affecting the healthcare industry includes high oil prices, the sub-prime mortgage crisis, the weakening strength of the U.S. dollar, and international economy. The US spends a greater share of its GDP on healthcare than any country in the world (Economist Intelligence Unit, 2008). PSHMC has experienced trends where elective procedures are scaled back in a bad economy and if the patient has a choice, may choose not to travel to receive healthcare.

Forces and Trends

Since 2001, severe economic changes have caused many companies to examine their internal structures. These changes consist of demographic and economic forces, technological advances, increased global competition, emphasis on quality, customer demands for increased efficiency (outsourcing, part-time workers, self-directed work teams), and government policy changes.

Healthcare CIO's are becoming experienced leaders of innovation and process change. Most healthcare organizations are not operating in a manner that enables them to obtain maximum benefits. During the strategic planning process, CIO's must also be innovative change agents whose IT-enabled initiatives enhance revenue and drive high levels of operational performance and regulatory compliance.

Remote Environmental Forces: HIPAA and Medicare Regulations

An organization's remote industry ...

Solution Summary

Since 2001, severe economic changes have caused many companies to examine their internal structures. These changes consist of demographic and economic forces, technological advances, increased global competition, emphasis on quality, customer demands for increased efficiency (outsourcing, part-time workers, self-directed work teams), and government policy changes.

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