Hospital administration requires that one is aware of the organization’s environment and its forces, which impact on the strategic direction of the facility. Because of the dynamic nature of these forces and their changing influence on the hospital’s environment on a…
g all the time, it becomes increasingly difficult for the administrator to understand them and work to ensure that they do not affect the competitiveness of the organization. Moreover, Healey and Marchese (2012) note that it is unrealistic to expect hospital administrators to be aware of all these changes, specifically those changes that impact on the environment of the hospital. Therefore, as administrators continue to manage internal factors that influence their hospital facilities, Ginter et al (2013) ask whether it is realistic for the same administrators to be cognizant of their external environment at the same time. The answer to this is that hospital administration requires not only the management its internal confines, but also anticipation and management of factors and trends on the outside that impact the hospital’s operations and competitiveness.
Changes in the political and economic environment, which are external to the hospital, need to be evaluated by the administrator for them to understand how they will impact the strategy and competitiveness of the hospital. The political environment is dynamic and constantly changing. For example, every hospital administrator is aware that the briefs received from state agencies, along with the Centers for Medicaid and Medicare result in substantial requirements for paperwork that must be understood, assessed, addressed, and implemented (Noh et al, 2011). However, there are also other political forces that are not directly linked to the healthcare sector that could portend formidable impact on the hospital’s environment. Elected officials and special interest groups may not view the issue at hand, such as obesity, from the same perspective, normally espousing competing and diverse interests. Moreover, the partisan agenda of the Republican and Democratic Party also have to be factored into the assessment of the hospital’s environment, particularly because the party that holds a majority has the political ...
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