Swot Analysis Of Kaiser Permanente

With 17 existing hospitals and ____ physician practices, the Greater New Orleans Region of Louisiana is not a practical choice for Kaiser Permanente expansion. The four parishes: Plaquemines, Jefferson, St. Bernard, and Orleans would not make for a successful business venture. This report examines how the Kaiser Permanente Brand and Strategy Division assessed the region and determined the region could not realize and expand the mission and vision for Kaiser Permanente…..
PEST Analysis
Part of our decision was determined by the completion of a PEST analysis, or a diagnosis of the environmental situation in the region. The political, economic, social, and technological climate of the region tells us how the environment would

affect a Kaiser Permanente facility or physician group’s competitive advantage. It also gives insight into issues and trends that might impact how Kaiser Permanente would operate and determine future planning.
First, we explore the political environment, and the local developments that could affect a Kaiser Permanente expansion.

The Greater New Orleans Area has a population of about 1,251,849 people. Louisiana has the third lowest state property tax at 0.46 percent, and Plaquemines has the lowest property tax of the four at 0.402 percent. This bodes well for purchasing a building in the region, as Kaiser Permanente would pay lower property taxes. However, there are more pressing concerns: the state has a large deficit, just announcing a forecast shortfall of $530 million in Medicaid due to a jump in enrollees in the state program run by five private insurance companies. Louisiana was also just listed as the fourth worst state in terms of access to mental illness care, but one of the states with the highest prevalence of mental illness. There are 18 hospitals in the region, with three major health systems and four stand alone hospitals that service St. Bernard, Jefferson, and Plaquemines, the parishes farther from the city center. Blue Cross Blue Shield is the predominant provider network, covering 214,790 enrollees, or 65 percent of the market share (Becker,

2013).
Second, we addressed the main economic issues that might affect the organization. The average median household income is slightly higher than the state average at $45,474, with Orleans at the lower end and Plaquemines the highest. The unemployment rate is 18.8 percent, slightly lower than the state unemployment rate of 19.1 percent, and 13 percent lower than the national unemployment rate. These numbers show this metropolitan area does not have a healthy payor mix. The uninsured population of 21.25 percent would be a large strain of resources, as seen in the struggling charity hospitals of the area, dealing with approximately 266,017 uninsured residents (U.S. Census, 2014). However, newly elected Governor John Bel-Edwards plans to expand Medicaid, which would qualify about 300,000 Louisiana residents.
Third, the developing social trends that would impact operations and future growth.

The region contains a majority of high school graduates with some college, but 14.2 percent have less than a high school education. When the four regions are averaged, there is a slightly higher percentage of white or caucasian citizens in the demographic at 46.4 percent than the 40.1 percent black or african american citizens. The average population density falls at 965.5 per square mile, but the four fall very differently with Orleans at 2,274 per square mile and Plaquemines at 30 per square mile, bringing it and St. Bernard below 1,000 persons, the definition of a rural territory. The area is growing each year, with an average change of 9.5 percent, Jefferson parish leading the charge with a 23.7 percent change between 2010 and 2014 (U.S. Census, 2014). The residents of the region are not very healthy: 29.7 percent are obese, 24.7 percent smoke, and 36.6 percent have hypertension (LBRFSS, 2013). In a study by the City of New Orleans Health Department, the breakdown by type of insurance coverage is as follows: the largest share of patients were uninsured (41.2%), followed by Medicaid (24.1%), and privately insured (14.1%), however this data covers more parishes than just our four. “In 2010 specifically, 81% of individuals residing in Orleans Parish reported health insurance coverage where 54% reported private insurance coverage compared to 36% with coverage from public programs

(e.g., Medicaid, Medicare). In addition, 22% of employed individuals lacked health insurance coverage.” (NACCHO, 2013).
Fourth, we investigate the changing technological environment in the region and what it could mean for Kaiser Permanente. The city of New Orleans and Orleans parish are definitely a technological hub, with much competition for cyber security, gaming, and other high-growth industries. “The Louisiana Workforce Commission projects information security analysts and software developers will be among the fastest growing jobs in the region over the next decade alongside jobs like home health aides and medical records technicians.” Recently, Ochsner became one of the only health systems in the nation to provide low dose radiation CT scans and the BioInnovation Center hosted new breast reconstruction, faster and lower cost in vitro tests, and other New Orleans startups. From 2011 to 2013, New Orleans startups formed at a per-capita rate 64 percent higher than the national average, and the Greater New Orleans Area employed more than 6,5000 tech professionals.