The External Assessment

A complete strategic plan will always include an external assessment. The

external assessment should examine the organizations historical performance
as it relates to its respective marketplace, including analysis of the markets
historical performance as well as anticipated future trends and forecasts. The
external assessment has five main components:
1. Review of demographic, economic, and health status conditions
This task identifies broad trends and variables that will impact organizational
performance. In addition, this task can assist in possibly identifying geographical
areas or population segments that exhibit potential for future development.
2. Review of the state of healthcare delivery
This piece of the assessment will review applicable healthcare technology,
delivery, reimbursement, regulatory, teaching, and research trends to identify any
significant environmental factors that may affect the organizations
performance. Major trends in each category should be profiled for the previous
three to five years. In addition, forecasts of predicted trends for the next three to
five years should be identified and discussed.
3. Analysis of competitors
A thorough competitor analysis should be conducted that is based on data from a
variety of sources at all geographic levels (i.e., locally, state-wide, regionally,
nationally)
4. Primary market research
Market research should ideally provide relevant information on the organizations
position in its marketplace relative to its competitors, as well as predictions for
likely changes in external factors. Senior leadership from competitor
organizations, community leaders, and other individuals with relevant knowledge
of the healthcare delivery system typically serve as ideal research targets.
5. Assessment of market forecasts and implications
Previously compiled data from publicly available forecasts should be collected
and analyzed. If additional forecasts are required, projections should include
analysis of all major health service components such as acute, post-acute, and
ambulatory care services by major service lines.
The end product of the external assessment should be a complete and concise
summary of the organizations market structure. A brief report with highlighting of
key points (including a handful of relevant charts/graphs) should suffice. If
necessary, additional materials may be available for back-up support.