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1. Indian Hospital industry Peste analysis
INTRODUCTION:
Healthcare industry is a wide and intensive form of services which are related to
well being of human beings. Health care is the social sector and it is provided at
State
levelw i t h t h e h e l p o f C e n t r a l G o v e r n m e n t . H e a l t h c a r e i n d u s t r y c o v e r s h o s
p i t a l s , h e a l t h insurances, medical software, health equipment’s and pharmacy in it. Right
from the timeof Ramayana and Mahabharata, health care was there but with time,
Health care sector has changed substantially.
With improvement in Medical Science and technology it hasgone through considerable
change and improved a lot.
The major inputs of health care industries are as listed below:
I I . M e d i c a l
i n s u r a n c e I I I . M e d i c a l s o f t w a r e
I V . H e a l t h e q u i p m e n t s Health care service is the combination
o f t a n g i b l e a n d i n t a n g i b l e a s p e c t w i t h t h e intangible aspect dominating the
tangible aspect. In fact it can be said to be
completelyi n t a n g i b l e , i n t h a t , t h e s e r v i c e s ( c o n s u l t a n c y ) o f f e r e d b y t h e d o c
t o r a r e c o m p l e t e l y intangible. The tangible things could include the bed, the
décor, etc. Efforts made byhospitals to tangiblize the service offering would be
discussed in details in the uniquecharacteristics part of the report.
PEST ANALYSIS
1) Political Analysis:
•The government is reducing its hold on subsidies.•
There are particular pressure groups which tend tohave
a n i n f l u e n c e o n government hospitals•
The cost of medicines also tends to affect hospitals besides
a f f e c t i n g t h e pharmaceutical industries•Relationships
between neighboring countries also affect the hospital sector
) Economic Analysis:
•Increase in income would lead to an increase in the standard
o f l i v i n g . T h u s people’s lifestyles changes and health is better understood. Thus
there is a roomfor specialized treatment, doctors, and hospitals• G o v e r n m e n t h a s m a d e
l o a n s e a s i l y a v a i l a b l e a n d t h u s p e o p l e w i t h l i m i t e d m e a n s could avail
better/specialized treatment

2. 3) Social Environment Analysis:
•Medical facilities have increased since there is more awareness of
h e a l t h c a r e a m o n g thepopulation• C e r t a i n p e r c e n t a g e s o f b e d s h a v e t o b e k e p t
f o r p o o r p e o p l e . E . g . i n B o m b a y 2 0 % o f beds has to be kept reserved for poor
people.• L o o k a f t e r t h e n e e d s o f l o c a l p o o r p e o p l e . • O p e n c o u n s e l i n g
a n d r e l i e f c e n t e r s . •Teach hygiene, sanitation among the
poor masses.• S a f e d i s p o s a l o f h o s p i t a l s w a s t e s l i k e u s e d i n j e c t i o n
n e e d l e s , w a s t e b l o o d e t c . a n d taking due care of
environment.• S p r e a d i n g a w a r e n e s s
a b o u t v a r i o u s d i s e a s e s t h r o u g h c a m p a i g n s a n d f r e e m e d i c a l check ups.
4) Technological Environment Analysis:
•Breakthrough innovation in the field of specialized
equipment• C o m m u n i c a t i o n h a s m a n a g e d t o b r i d g e t h e g a p b e t
w e e n p l a c e s l o c a t e d a t l o n g distances• T e s t t u b e
b a b i e s •Mobility of medical
services•Mobile phones, credit cards (for payment purposes
) e t c h a v e m a d e d o c t o r s a n d medical facilities easily available

3. PESTEL ANALYSIS OF HOSPITAL INDUSTRY
The macro environment tends to have a long term impact and requires extensive research.
Couple this with the fact that many managers are over worked and under resourced and we begin
to see why the process is often not completed. There is no published evidence to confirm this
hypothesis, just anecdotal hearsay.
The remainder of this article will illustrate an example of a Macro or PESTLE analysis for the
HOSPITAL industry. It is set at a very general level but it can be used as a template or adapted
to be more specific if required:
Political
There is now growing political focus and pressure on healthcare authorities across the world.
This means that governments will be looking for savings across the board. Some of the questions
the industry should ask are:
 What pressures will be put on pricing?
 What services will be cut?
 Will the same selection of drugs be available to everyone?
In addition to this, could there be more harmonization of healthcare systems across Europe or the
USA? What impact will reforms have on insurance models?
Economic
The global economic crisis still exists yet government reports still show that the spend on
healthcare per capital continues to grow. Will the current healthcare models exist tomorrow? The
growth in homecare (as seen in the Nutrition sector) demonstrates how nursing services have
moved to the private sector and have become a key business offering.
The reduction in consumer disposable income will have an impact on those countries using
health insurance models particularly where part payment is required.
These economic pressures are seeing an increased growth in strategic buying groups who are
forcing down prices.
Increased pressure from shareholders has caused a consolidation of the industry: more mergers
and acquisitions will take place over the coming years.
Social / Culture

4. The increasing aging population offers a range of opportunities and threats to the pharmaceutical
industry. The trick will be to capitalise on the opportunities.
There is also the problem of the increasing obesity amongst the population and its associated
health risks.
Patients and home carers are becoming more informed. Their expectations have changed and
they have become more demanding. Public activism has also increased through the harnessing of
new social networking technologies. How can pharmaceutical companies get closer to consumers
without over stepping the regulatory boundaries?
Technological
Technological advancements will create new business prospects both in terms of new therapy
systems and service provisions. The online opportunities will see the growth in:
 New info and Communications technologies.
 Social Media for Healthcare.
 Customized Treatments.
 Direct to Patient Advertising.
 Direct to patient communications.
Legislation
The pharmaceutical industry has many regulatory and legislative restrictions. There is also a
growing culture of litigation in many countries. The evolution of the internet is also stretching
the legislative boundaries with patient’s demanding more rights in their healthcare programmes.
Environmental
There is a growing environmental agenda and the key stake holders are now becoming more
aware of the need for businesses to be more proactive in this field. Pharma companies need to
see how their business and marketing plans link in with the environmental issues. There is also
an opportunity to incorporate it within their Corporate Social Responsibility programmes.
Marketing and new product development should identify eco opportunities to promote as well.
The information above illustrates just a fraction of the likely macro factors involved in the
pharmaceutical industry. A better way to summarise it would be in a table: