Industry Size and Growth Trends
The healthcare industry is a 3.2 trillion dollar industry in the U.S. and it is expected to grow in the next few years. The growth of the trends has slowed down to 9% in the past few years compared to the early 2000s. The prescription drug sector has increased with costs rising while the cost of medical expenses is not one that can be drawn because of their uncertainty. HMO covers are expected to increase in the 2016 to 8.6% from 7.2% (Allen, 2015).
Maturity of the Industry
The healthcare industry in the U.S., as experts put it is yet to reach maturity as measured using the Healthcare Analytics Adoption Model. The industry only occupies the lower three levels out of a possible nine levels because it has proven to be a bit hard to implement technology in a bid to save money and deliver quality services (HealthCatalyst, 2015). All stakeholders in this industry are hoping to do better with the second wave of technology that is promising them returns for their hefty IT investments.
External Economic Factors and their Effect on the Industry
The economy tends to have some adverse impact on the healthcare industry due to downsizings in companies during recessions. It leads to the loss of healthcare coverage for these individuals as well as cutting back on premium benefits. These employees once they regain employment tend to opt out of the premium coverage and thus the industry does not fully recover with the recovery of the economy (Bernstein, 2009).
Seasonality
While healthcare is all around the clock, there are specific services in the healthcare industries that appear to be seasonal like dental services as a result of the deductibles. It mostly happens at the beginning of the year and the end of summer in August. There is also an increase in patient flow in hospitals during the flu season in winter. For healthcare enrollment, it seems to take mostly place at the end of the year in November.
Technological Factors
They account for most of the rising cost of medical care at 7% per year as people search for faster and more efficient treatment methods. Annually, 40-50% of costs that go into medical care are used up to cover technology expenditure. It is, therefore, becoming more expensive for employers to afford proper insurance cover and making it very hard for the uninsured to access affordable healthcare (Callahan, 2016).
Regulatory, Political, and Legal Concerns
The industry is overseen by different regulatory bodies that are neither uniform nor consistent in their functions (Field, 2008). The same goes for the political concerns as dictated by the Congress, who determine the nature of the healthcare being provided and it has become so overwhelming with all these bodies trying to control it. It has to comply with certain legal standards set at each point and makes it a bit hard to navigate.
Competitive Environment and Changes in the Competitive Environment
The healthcare industry has vicious fierce competition as each provider promising only the best services at a very affordable cost. Over the past few years with the lightning speed of the evolution of technology, providers compete using this advantage. Competition has moved to patient satisfaction (Rivers and Glover, 2010).
Key Challenges Facing the Industry
The major challenge has been to provide quality healthcare to patients due to lack of accountability at the level of hospital administration (Greiner and Knebel, 2003). It has resulted in the loss of many lives as these errors are not reported to avoid tarnishing the names of the companies invested in the industry. Another key challenge has been the integration of the computer system in the hospitals. Adoption of the new technologies is taking long and causing the loss of lives. Finally, there are the poor working conditions of the nurseswork in. The shortage of nurses in the hospitals means that they are subjected to long working hours to compensate for it. They are thus, unable to provide quality care to the patients.
Company’s Steps to Meet the Challenge
LifePoint Inc. encourages only the highest level of ethical conduct prompting their healthcare professionals to perform their duties as needed and holding them accountable for their errors. It has made the company into a reputable and profitable one with very high rates of customer satisfaction. The company is very keen to hire only the most qualified and legally abiding professionals who provide the highest level of care. LifePoint Inc. prides itself on being able to put in continuous quality measures that ensure all new technological innovations are integrated seamlessly into their hospitals and give their staff very safe working environment.
References
Allen, N. (2015). Healthcare Trends Projections 2016. Wells Fargo. Retrieved online from <wfis.wellsfargo.com>
Bernstein, J. (2009). Impact of the Economy on Health Care. Changes in Health Care Financing & Organization, August Issue. Robert Wood Johnson Foundation
Callahan, D. (2016). Health Care Costs and Medical Technology. The Hastings Center. Retrieved online from www.thehastingscenter.org
Field, R. I. (2008). Why Is Health Care Regulation So Complex? Retrieved online from www.ncbi.nlm.nih.gov
Greiner, A. C. and Knebel E., ed. (2003). Health Professions Education: A Bridge to Quality. Washington, DC: National Academies Press.
Rivers, P. A. and, Glover, S. H. (2010). Health Care Competition, Strategic Mission, and Patient Satisfaction: Research Model and Propositions. Retrieved online from www.ncbi.nlm.nih.gov
