The health care industry combines various sectors within the economic system that provide goods and services to treat patients with curative, preventive, rehabilitative and palliative care. The modern health care industry is divided into many sectors and depends on trained professionals to meet the health care needs of individuals. The health care industry is one of the largest and fastest growing world industries. Every economy spends almost 10% of its GDP on average on health care for its people. Naturally this figures varies from country to country, depend upon the stage of development they are in. This basically denotes the paramount importance of health care for nations as well as individuals.
Healthcare costs continue to rise rapidly in the US and throughout the developed world. In fact total US healthcare expenditures were estimated at $2.9 trillion in 2013 alone. These expenditures are expected to soar to $3.4 trillion in2016. The health care market in the US included the major categories of hospital care, physician and clinical services, dental services, prescription drugs and nursing home and health. These healthcare facilities are provided to US citizens through government plans and bodies such as Medicare and also through private companies like pharmaceutical companies such as Abbot Industries, etc. The health spending in the US, at about 18% of the Gross Domestic Product, is projected to grow steadily over the coming years, showing the importance of this entire industry.
Potential investors, looking at these trends and the significance of the industry may purchase shares of major healthcare providers. The prime motive behind this is to make capital gains. The health care companies include the HCI group which is one of the top companies when it comes to health care and had a whopping sales revenue of $25.5 million. Patient Conversation Media, The joint, VRX, Intellect Resources, Clinovations, Aetna and numerous other pharmaceuticals, and the likes are other health care companies. Bidnessetc.com analyses the stock price movements, financial and non financial data of these healthcare companies in greater depth.
In terms of recent developments, a non-profit organization is teaming up with health insurance companies to provide consumers free access to an online tool that will offer transparency about both the cost and the quality of services consumers receive in healthcare. The health insurance giants including Aetna, Humana, United Health Group and Cigna stock are going to be collaborating with the non-profit organization for this new tool. The need for this tool arose because more Americans demanded to know exactly what expenses and costs were being incurred in the name of healthcare. This move came after the Affordable Care Act. Abbott, another leading healthcare business agrees to purchase Chile’s CFR pharmaceutical. It is important to note this trend of mergers and acquisitions and increasing convergence within the health care industry. This may eventually lead to greater consolidation of businesses and cutting down of competition.
A very interesting development is the use of social media by pharmaceutical industries to monitor drug side effects as otherwise 90% of these go unreported. Researchers from Boston University, the FDA, Harvard and other institutions examined 6.9 million twitter posts over seven months and identified 4401 tweets that identified the types of side effects worth reporting to the FDA.