1.

Discuss how the role of the hospital in health care and hospital planning
and design are being affected with the PESTER environment. Provide a
relevant example. (644words)
a. Political d. Technological
b. Environmental e. Economics
c. Sociological f. Religion

A PESTEL analysis is a framework that a healthcare provider can use to analyze external events, factors or trends in areas
that can affect the design and planning of its structure. It stands for Political, Economic, Sociological factors,
Technological factors, Environmental and legal factors.

Political factors include changing tax legislatives, consumer protection and employment regulation and insurance
mandates that could impact a healthcare. For example, with the recent approval of increased premiums in the state
health insurer Philippine Health Insurance Corporation (PhilHealth) in order to provide fund sustainability and to
effectively implement the Universal Health Care. According to Republic Act 112233, premium rates of Direct
Contributors will gradually increase from per 2.7 % to 5 % towards the end 2024. Likewise, the salary will also increase
for the current Php 40,000 to Php 100, 000 over the first year period with increase floor pegged at Php 10, 000. This
change and tax policy will call for a strategy adjustment that either takes advantage of increase government spending
for health or makes allowances for reduced government subsidies.

Economic Factor includes issues like unemployment, inflation and interest rates that could directly and indirectly
influence the financial performance of health care organizations. Because of the high global inflation rate, the purchase
of medical equipment may be affected, the salaries and number of staff may be adjusted and patients may seek more
confinement in government hospitals that provides free or lesser cost.

Sociological factors include changes in demographic, values, and beliefs of various consumer groups. A hospital should
have knowledge about the community it serves to avoid violating values or norms. Like during the Covid time, the setting
up of quarantine facilities should be far from populated or commercial areas that may be perceived by the community as
threat to their overall health.

Technological factors include advancements specific to hospitals and healthcare providers. Like the new radiologic
digital imaging, CT scans, MRI, and 5-D ultrasounds.

These medical equipment can enhance and facilitate diagnosis and better management of patients. Installing hospital
Information System HIS), Laboratory Information System can facilitate the exchange of data to patient’s health
information thereby, improving the cost, quality, safety and speed of patient care. The application of app in
telemedicine facilitates communication with patient even for remote areas. Planning ahead to the advantage of this
advancements could mean good opportunities for growth.

Environmental factors can include climate change which could result in changing disease patterns which could make
others susceptible to different illnesses. Climate change may also been linked to an uptick in floods, wildfires and
superstorms that can profoundly harm human health. Another environmental factor which plunged the healthcare
industry almost in chaos is the disease-causing microbes, notably Covid 19, immediate facility quarantine and isolation
facilities were put up or converted to accommodate affected patients.

Hospitals realize the importance of negative pressure operating rooms and well-equipped ICU units with adequate
ventilators. Other environmental factors like clean air, adequate and clean water, sanitation and hygiene, safe use of
chemicals, protection from radiation, healthy and safe workplace, sound agricultural pollutants and a preserved nature
have great impact on delivery of healthcare.

Legal Factors may include new laws and legal procedures that govern healthcare. For example, the passing of Data
Privacy Laws like Republic Act 1073, the Data Privacy Act of 2012 which explicitly require organization to protect and
safeguard the flow of information in respect to individual’s rights. Healthcare providers should ensure advance and
secured hospital information system for the best interest of the consumers they serve. The PESTER factor may vary in
importance according to the need of the community. It can provide a good strategy that will align the current needs of
the local population. The way to create that alignment is to look outward the community understand the health trends
so that it can guide the decision of the organization in the future.