Conducting an environmental analysis Research Paper

Conducting an environmental analysis - Research Paper Example Since employer-assisted medical insurance, like, the Social Security Income fund, is collected from the monthly income of US citizens, it has led to a falling number of contributors and a rising number of claimants. As per a market research, the government expenditure on insurance programs, such as, Medicaid, has increased by around $3.5 billion in the year 2008 alone, owing to increasing number of claimants. This has led to many of the states opting out of the PPACA program that mandates them to increase spending on health insurance of citizens (Kaiser Family Foundation, 2008). The economic crisis has also had adverse impact on the financial performance of private insurance companies, in the form of less number of citizens opting for private insurers and higher operational costs due to rising inflation. This has also led them to take severe measures such as, initiating reductions in the extent of coverage and reimbursement of health expenses. Another major factor to be considered, during strategic planning of Jim’s Care Center, is the health care policy of the government. There has been a significant shift in the federal policy since the Patient Protection and Affordable Care Act (PPACA). Under this act, both insured and uninsured American citizens are guaranteed rights to receive treatment and medical attention at lower rates. This has created a stir in the medical industry, since operational costs are incrementally rising, amidst an economic crisis. The PPACA act has also mandated state governments to increase spending towards medical care of citizens, who belong to the lower income bracket and cannot afford to bear personal health expenditures (Odom, Owen, Valley and Burrell, 2011). Since the implementation of the PPACA act, it has created a huge uproar among states as they are already cash-starved due to increasing unemployment and decreasing income. It led to participating in PPACA