The healthcare industry is composed of establishments devoted to prevention, diagnosis, treatment, and rehabilitation of medical conditions. Such treatment may be through providing products or services, and may be provided privately or publicly.
The healthcare industry consists of those companies that manufacture medical products or provide services including prevention, diagnosis, and treatment of illness or other health issues, and rehabilitation.
There are many different kinds of health care facilities. In the United States, around 76 percent of establishments are practitioners’ offices, from dentist to doctor to optometrist. Hospitals make up approximately two percent of establishments, but account for around 59 percent of revenues earned. Other establishments include Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs), which are a kind of hospital- insurance company mix. There are also nursing and residential care facilities, specialty providers such as nursing homes or specialty treatment centers (such as those for diabetes treatment, physical therapy, or chemotherapy), home care providers, and medical laboratories.
The healthcare industry is highly fragmented and healthcare systems vary from country to country. In the United States, insurance coverage is the responsibility of the individual; however, recent legislation will transition it to a more universal care. In other developed countries, including United Kingdom, Canada, Australia and Italy, healthcare is provided by the government for all citizens.
Healthcare is the largest of the industries. The United States’ healthcare system is the largest in the world, worth around $1.7 trillion, as compared to $700 billion in Europe. Despite the government control in Europe, healthcare providers are suffering due to the rising costs and demand exceeding capacity. In the United Kingdom, they have started teaming up with private care providers to handle the excess demand.
One trend in the industry in the United States is the rise in the popularity of PPOs and HMOs, which are prepaid plans that focus on preventive care, thereby greatly reducing the costs associated with ailments caught too late. These plans tend to be more affordable than typical insurance. For the healthcare providers, there has been a rise in e-procurement of medical products.
Company Clients and Industry Leaders
UnitedHealth Group (United States), Cardinal Health (United States), Express Scripts (United States), WellPoint (United States), Sanofi (France)