Differences Between Internal and External Stakeholders

Health Care Administration: Governance, Organizational Classification, & Stakeholders SLP
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Health Care Administration: Governance, Organizational Classification, & Stakeholders SLP

Internal Stakeholders

External Stakeholders

1

Internal stakeholders in health care governance refer to individuals and parties within the organization that influence or are influenced by the institution's activities (Yoon & Chung, 2018). They include nurses, doctors, management, trustees, and the board committee members. They take part in the running of the health facility and ensure that the organization achieves its objectives for the best outcomes for patients. They are part of the organizations’ daily activities and are actively involved in ensuring smooth operations.

External stakeholders comprise individuals and parties outside the organization that is impacted by the organizational activities. Patients, service users, regulatory authorities, medical suppliers, and the wider public health workforce. These outside players are not part of the management team but influence management decisions. They are not part of the institution in terms of management but are affected by its activities.

2

 
Internal stakeholders work in the health sector and provide their services to the institution. Their services are rewarded through wages and benefits, and the management controls and oversees their performance. For instance, clinicians and nurses are renumerated after providing their professional services to the organization. The relationship differs as they serve the institution and are compensated for their services. Internal stakeholders are the primary stakeholders in the organization, without which the institution cannot achieve its stated goals (Rudyanto & Siregar, 2018). Nurses ensure that patients receive the necessary services; hence patients cannot receive care without them.

Conversely, external stakeholders deal with the organization indirectly. They seek critical services from the organization and pay for the services offered to them at the health facility. Additionally, medical suppliers are paid for products delivered to the health facility. Internal factors within the health care facility affect them, such as poor service delivery and poor-quality services. The relationship is external as they provide critical services and products to the company and are paid for the products delivered. External stakeholders are the secondary participants in the organization. A patient’s experience is dependent on the services provided by primary stakeholders, including hospital management, nurses, and clinicians, amongst others.

3

Internal stakeholders’ sources of influence include a hierarchy (formal power), leadership style (informal power), possession of knowledge and skills, and 8involvemnet in strategic implementation (Yoon & Chung, 2018). For instance, nurses intera...