The healthcare industry depends on evaluating existing and impending

legislation, changes in market and economy, societal changes over time and
technological advancement. Political stability is always an important factor;
change in governments can affect the healthcare sector and general people
as well. The healthcare industry is the fastest growing industry in the
economic system of any country. This industry is divided into three categories
health activities, dental and medical activities along with various other human
health practices. The healthcare industry must understand these external
environment factors. The pest analysis of healthcare industry provides better
information about present and future change in political, economic, social and
technological factors that affect the industry. 

Political Factors
The Political environment impact on the healthcare industry performance is
changing continuously mainly because of the changing government
regulations. Many economies across the world have introduced ways through
which spending in the health industry is curbed down. The political factors like
changing tax laws, employment regulations, consumer protection laws and
insurance mandates can impact the healthcare industry. In addition to this,
changes in the importing policies of drugs as well as strikes of health experts
because of irregularities in salary are core political issues that affect
healthcare companies. Government spending on the healthcare industry is
greatly affected by changes in tax policy.

Political factors play a significant role in determining the factors that can impact HCA
Healthcare, Inc.'s long term profitability in a certain country or market. HCA Healthcare, Inc.
is operating in Hospitals in more than dozen countries and exposes itself to different types
of political environment and political system risks. The achieve success in such a dynamic
Hospitals industry across various countries is to diversify the systematic risks of political
environment. HCA Healthcare, Inc. can closely analyze the following factors before entering
or investing in a certain market-

Economic Factors
Unemployment, interest rates, credit availability and inflation are economic
factors that affect healthcare industry performance and operation.
These Economic environment changes can greatly influence the
spending policies of companies and purchase behavior of consumers. For
example, increasing interest rates may fail many investors in the health
sector. Similarly, higher unemployment levels or reduced buying power of
consumers would imply them to not to buy the products or services of
healthcare manufacturers. It is also wise to determine infrastructures that can
improve medical services and increase investment in the industry to some
extent.
The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate
investment in an economy. While micro environment factors such as competition norms
impact the competitive advantage of the firm. HCA Healthcare, Inc. can use country’s
economic factor such as growth rate, inflation & industry’s economic indicators such as
Hospitals industry growth rate, consumer spending etc to forecast the growth trajectory of
not only healthcare sector but also that of the organization. 

Social Factors
Socio-cultural factors focus on issues like gender preference, aging population,
reduced fertility along with beliefs, values and norms that a particular
customer segment holds. It is very important for organizations to determine
the culture of their consumers so as to avoid violation of values and beliefs.
For example, people use natural herbs for diseases like fever, flu and
headache and this usage is constantly increasing. Understanding the reasons
behind this approach can help the healthcare gurus and they can reach these
patients with a better idea. The increasing level of obesity amongst the
population and the health risks associated with it is another point of concern.
People are now more inclined towards eating lesser artificial sugars or
processed chemicals. People are now more informed. There is a great change
in their expectations and now they have become more demanding. Hospitals
and healthcare professionals can benefit from these changing and
progressive trends. This can also serve as a long-term marketing strategy as
the culture of any population changes rarely. It is very important for healthcare
service providers to come closer to their consumers without exceeding the
regulatory limitations.

Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how
marketers at HCA Healthcare, Inc. will understand the customers of a given market and
how they design the marketing message for Hospitals industry consumers.

Technological Factors
Resourcefulness and novelty stand at the heart of technology. Technological
advancement in the healthcare industry can affect the performance of key
players. Medical companies are engaged in healthcare distribution as well as
healthcare technology solutions. For example, power wheelchair provides
people with disability to move easily within home, workspace and
community. Technological innovations can also be utilized as marketing
strategies for bringing in healthcare technological solutions. Technological
factors, as a matter of fact, provide excellent growth opportunities for
healthcare companies. Developments in computer applications can allow
patients to receive treatment or care faster than before. Now, several
healthcare companies are offering apps to get doctors connected with their
patients. Moreover, several healthcare institutions also allow making a live
chat or email to doctors for querying about their illness.