The Health Care Environment
The most important external environmental factor for Medtronic is government regulation. It is mandatory to comply with their regulations, and the government is involved in setting the quality standards and liability laws. The government in the US has increasingly become involved in health care since the creation of Medicaid and Medicaid in the 60s (Medtronic, 2013). Their implementation started a trend of increased medical spending with Medicare expanding the reimbursement for cardiac defibrillators. This has caused the system to move to a strategy of predict and manage from one of diagnose and treat under initiatives for health care expenditure control. Fortunately for the organization, there seems to have been little accomplishment with chronic diseases like diabetes and obesity increasing, whereas an aging population has ensured that there is a steady demand for their products like defibrillators and vascular tents, which Medtronic and their competitors manufacture (Medtronic, 2013).
Because of the government’s immense power, there is an active attempt to influence it with the American Medical Association having been the most powerful, although this is no longer the case (Medtronic, 2013). The entire health care system has come to be defined by special interests. The government also heavily regulates facility providers with some of Medtronic’s competitors closing down due to decreased profits. ...Show more