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Private Nursing Home - Case Study Example

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The aim of the paper is to examine the factors of the external environment which affect or can possibly affect in the future operations and state of a middle-size private nursing home situated in the rural neighbourhood close to Aberdeen. The size of the medical and care staff employed constitutes around 90 employees, including a matron, three managers and two office workers, seven doctors, fifteen nurses, carers and technical and cleaning staff.
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Private Nursing Home
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The nursing home derives most of the financial resources necessary for steady functioning from the funds received from the local authorities' budget (constitute around 90% of the resources structure), the rest is financed through the residents' payments. For the analysis P.E.S.T.E.L. framework has been deployed. The factors of the external environment are grouped into political, economic, social, technological, environmental (ecological) and legal. The major factors for each group are listed and the degree of influence of each particular group of factors assessed.

As the issue of post-retirement personal care and medical treatment of the elderly citizens is of high importance for the developed society, unsurprisingly the political environment has been influencing the state and perspectives of both private nursing and residential care homes through the history of their development. These two types for a long time has been treated and regulated separately until in 2001 they were legally addressed with the same types of requirements and legal provision. The most obvious and important trend is the significant increase of the number and share of the private sector nursing homes and decline in the share of these type of services provided by the public sector and administrated by the NHS.

Privatisation of the earlier dominated by the public sector services had also affected provision of medical and care services for the elderly residents.For the particular nursing care home this trend's consequences are two-folds. First, it means shift in attention of the regulatory bodies towards the specific conditions of the privately owned homes and development of more specified requirements and constraints for the funding, facilities, care and medical treatment level, stuff competency etc.

It may also result in increased funding opportunities for the privately owned nursing homes. Second, the increased competitive pressure caused by increased number of privately owned service-providers, both with regard to the residents' demand and funding provision, can become a market threat for the nursing home. Economic factors The general state of economy, income level and distribution and lifestyle of the population, determined by savings and spending preferences through the life are the important determinant of the nursing home's environment.

General state of the economy of the country influences not only directly the economic and financial state particular business, but also the conditions of the customer base and local authorities, thus causing indirect influence on the nursing home. One of the factors to be considered is the growing income of the population and increased amount of funds available for spending in the late period of life. The improved financial position of many older people means that some are making a positive choice over long-term care; housing circumstances throughout life can affect decisions about housing and care later in life.

(Peace, 2003, p.9)Another economic issue that is of great importance for the privately-owned nursing home, taking into account its size and limited resources, is the

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