Tenet's Current Economic Environment
the current economic environment of the organization.
In order to access the current economic environment of Tenet thoroughly, a strategic management approach is necessary. The economic environment is not static – it is ever changing. For the healthcare industry, the change of this is increasing (and increasing at a greater pace); this is referred to as whitewater change.
Health organizations have embraced strategic management as a mechanism for coping with the increasing amount and pace of environmental change (or white water change). The big changes from 2009-2014 include:
• 2009 end of the Great Recession and a sluggish recovery
• 2009 The American Recovery and Reinvestment Act of 2009 o Creation of the Office of the National Coordinator …show more content…
The environmental changes noted affected Tenet in some way. Managers monitored those external factors.
Although this brief focuses on 2009-2014, today Tenet has a B credit rating indicating that it is a high default risk. A trend is that the company (like others in the industry) is that the entire stock sector takes a hit or boost based on news tied to Obamacare. Tenet and other hospital stocks have gotten large long-term increases in their stock prices with the fruition of Obamacare. The industry having less uninsured patients has led many to believe that hospitals would have fewer losses from healthcare charges that they would have to write off. Therefore if the ACA starts to fail, then going back to earlier circumstances would undo some of the benefits for Tenet.
Current news for Tenet cites that the company is debt laden, the stocks are down 26% for 2015. This is in contrast to 2013 when Tenet’s stock price increased 816 percent, from $4.60 to $42.12, over the previous five years. When looking at news within Tenet from 2009-2014 we
In order to access the current economic environment of Tenet thoroughly, a strategic management approach is necessary. The economic environment is not static – it is ever changing. For the healthcare industry, the change of this is increasing (and increasing at a greater pace); this is referred to as whitewater change.
Health organizations have embraced strategic management as a mechanism for coping with the increasing amount and pace of environmental change (or white water change). The big changes from 2009-2014 include:
• 2009 end of the Great Recession and a sluggish recovery
• 2009 The American Recovery and Reinvestment Act of 2009 o Creation of the Office of the National Coordinator …show more content…
The environmental changes noted affected Tenet in some way. Managers monitored those external factors.
Although this brief focuses on 2009-2014, today Tenet has a B credit rating indicating that it is a high default risk. A trend is that the company (like others in the industry) is that the entire stock sector takes a hit or boost based on news tied to Obamacare. Tenet and other hospital stocks have gotten large long-term increases in their stock prices with the fruition of Obamacare. The industry having less uninsured patients has led many to believe that hospitals would have fewer losses from healthcare charges that they would have to write off. Therefore if the ACA starts to fail, then going back to earlier circumstances would undo some of the benefits for Tenet.
Current news for Tenet cites that the company is debt laden, the stocks are down 26% for 2015. This is in contrast to 2013 when Tenet’s stock price increased 816 percent, from $4.60 to $42.12, over the previous five years. When looking at news within Tenet from 2009-2014 we