Running head: STAKEHOLDERS 1

Critical Thinking: Stakeholders

Hadel Awad

Dr. Reimersma

HSC1110

May 22, 2020

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Stakeholders and Their Effects in Health Care

In order for a business or a huge upcoming project to become successful, one must

contemplate on the roles and responsibilities of each individual associated with the ongoing

success of the business. Success, for many, indicates a steady growth in income and productivity

of a business, as well as creating a safe and structural environment for employees in the

workforce who are affected by the success and growth of the company. These individuals are

considered to be “stakeholders”, or “A party that has an interest in a company and can either

affect or be affected by the business”(Chen, 2020, para. 1). There are different career titles that

are considered to be stakeholders depending on the industry they work in, as well as their effect

on the company they are currently working for. The primary reason for the existence of

stakeholders, as well as their role in the success of a business, is their interests in a specific

decision, goal, or outcome, thus building a strong foundation to a starting business, corporation,

or institution.

Stakeholders can be found in large corporations, retailers, franchises, hospitals, and

medical clinics. Health care has been a prominent setting for stakeholders to express their

interests in the medical field, ensure quality of care, and provide knowledge and medical care

that eventually affects not only individuals receiving direct care, but also those outside of the

field that are affected by their influence. There are two types of stakeholders that present interest

through a direct relationship with a company or institution, called internal stakeholders, and

other individuals who are affected by these interests, actions, and outcomes but are not working

directly with the business called external stakeholders. Health care plays a huge role in

developing improved technology and delivering prominent skills and care by the involvement of
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various different types of organizations and individuals who act as stakeholders of health care. It

can be defined as a broad system with a “Variety of services believed to improve a person’s

health and well-being”(Shi, 2015, p. 46) according to the World health Organization(WHO).

With health care’s many classifications in the deliverance of a broad set of services comes many

important stakeholders in the business.

Stakeholders are involved in the financing, investing, payment, and deliverance of a

certain company. These functions are considered to be basic components of a health care

delivery system within a quad-function model that represents the importance of physicians,

medical suppliers, insurers(Blue Cross/Veterans), payers, vendors, government institutions, and

managed care organizations in delivering health care to individuals who may also be considered

stakeholders since patients are being impacted by the care being delivered to them. “The U.S.

health care delivery system is massive, with total employment that exceeded 16.4 million people

in 2010 in various health delivery settings”(Shi, 2015, p. 4). Physicians, nurses, patients,

third-party administrators, and licensed medical professionals are considered internal

stakeholders due to their direct relationship in delivering health care. On the other hand,

pharmaceutical companies, multipurpose suppliers, public insurance financing companies, the

public health affected by the choices of internal stakeholders, and public health programs are

considered to be external stakeholders.

The interests of licensed medical professionals, as well as a multitude of providers in the

field, lie in the importance of providing quality care to every individual who is in need of it

based on the severity of the injury and the outcomes that come with these interests. With

interests in the medical field comes responsibilities and informed consent to allow access to
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patients who are seeking help and assistance. Patient’s/client’s interests lie in the trust of their

care providers to treat their pain and injury, and therefore, create a positive outcome for not only

them, but for the experience and advanced knowledge of these providers. Insurers and payers

exist to support the prevention of financial loss to those receiving health care. Their interests are

of significant value to the hospital and have been able to grant an advantage to employers,

employees, and patients to permit the expansion of health care and its access to the people.

Overall, the objectives of a successful and ongoing health care delivery system should primarily

focus on “Enabling all citizens to obtain needed health care services; and ensure that services are

cost-effective and meet certain established standards of quality”(Shi, 2015, p. 4).

As successful and innovative a hospital, health center, rehabilitation center, or nursing

home may seem, there may arise conflicts due to the disorganized and unstructured array of

stakeholders that try to deliver the most advanced and effective care and training in their

specified career field. One familiar conflict that is associated with delivering the best health care

to individuals, especially those among low-income families, is the rising cost of both insurance,

and the cost of employees that have proved to be difficult to keep in control in the hands of

managers and executives of the company. Costs for a certain project that involves providing the

most advanced technology to one group of stakeholders, such as physicians, may be less valuable

in the eyes of executives than the cost of hiring employees and raising the stake for insurers and

public sectors. Conflicts due to the change in governmental policies and guidelines pertaining to

health care may be the primary reason why access to healthcare has become more challenging in

the past decade. Centers for Medicare & Medicaid Services(CMS) has been involved in the

authorization in creating policies that have further damaged the business perspective of health
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care. Societal responses to ineffective care in certain areas of the medical field due to their

growing interests in gaining profit than their interest in providing the best care for their patients

has created conflict between federal government institutions, pharmaceutical companies, and

medical professionals.

Developing programs run by reliable healthcare organizations and research funding

institutions approved by leading physicians that primarily focus on providing effective measures

for individuals who struggle to keep or obtain health insurance due to the lack of power and

control of internal stakeholders can minimize the barriers in accessing health care. Applying

system-oriented entities for the improvement and development of medical practices can be a

possible achievement for government changes that can also affect the overall public health in

acute-care situations. Obtaining information that patients may not be comfortable giving out can

affect the deliverance of health care negatively, therefore, implementing a strategic process for

employers and employees to work fluently and expressively can positively impact their interests

in their patients.

The health care delivery system is one of the most important assets and processes in

America. The health of the individuals leads to preventative care for various occupations and the

public health being affected by the decisions and actions of those responsible in implementing

and providing health care through certain laws and regulations. The goals of the stakeholders

working and are involved in health care are quite similar in terms of positive outcomes and

beneficial quality of care. The amount of stakeholders that exist in a career field, with the

merging of various interests, can create conflicts in the process related to the increasing costs in

healthcare, challenges in permitting all medical services pertaining to the stakeholders, and
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competition within the industry. Support and comprehensible rules should be visible to all

stakeholders in order for agreements to occur because a structured system of the roles of

stakeholders leads to a more efficient deliverance in health care.

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References

Chen, J. (2020, March 4). Stakeholder. ​Investopedia. ​Retrieved from

https://www.investopedia.com/terms/s/stakeholder.asp

Larrat, E. P., Marcoux, R. M., & Vogenberg, F. R. (2012, April). Impact of federal and state

legal trends on health care services. ​Managed Care and Hospital Formulary

Management, 37(4​ ), 218-220, 224-226. Retrieved May 22, 2020, from

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3351856/

Shi, L. (2015). Delivering health care In America: A systems approach, (7th ed.). Publisher:

Jones & Bartlett Learning ISBN-13: 978-1-284-12449-1