Gene Ray 06/09/13 HSM 544 Case Study 2

The Health Sector:

Status and its Investment Opportunities

The healthcare industry of America is the nation's largest and most profitable industry and it continues to grow. The American healthcare industry "has consistently increased its

Gene Ray 06/09/13 HSM 544 Case Study 2 share of GD from only !."# in $%!& to more than $'.&# in "&&(" and that figure is still

growing )*an +orn, "&$&-. .any /obs will be created through the healthcare system within the a few decades based on the current trend. +ealthcare, "&$$ et. al. states that over 0 million /obs are e1pected to generate through the year "&$(. 2esides the enormity of this industry, its broadness houses many investment opportunities and developmental ris3s which should be 4uestioned and studied. ossible changes may be made throughout these decades and the

promise /obs may remain /ust that5 promises. Therefore we should see3 out the governmental roles and its involvement in a possible increasing or decreasing healthcare industry. Also, we should see3 the innovation of this industry from a technological stand point and understand if it is a worthy component for the future of our healthcare in the fields of prevention and delivery systems. The topic concerning the role of government in healthcare will always be an issue, whether people are against it or for it, and will be a debate. As of now the current state of healthcare remains with high regulations under the hold of the federal and state government but a proportion is privately owned by the social insurance corporations. The federal and state government together account for 6' percent of national health care e1penditures7 nearly three54uarters of this is attributable to .edicare and .edicaid" ).orrisey, "&&(-. The remaining 6%# of health care costs are paid by "private health insurance 8which9 pays for more than 0: percent of spending ... and out5of5poc3et consumer e1penditures account for another $6 percent" ).orrisey, "&&(-. The :# is due to the ban3ruptcy or loss of wor3. ;ith this nation having almost :& million poor people and the individuals who cannot simply afford social insurance, ma3e the 6'# of the government owned healthcare insurance more

Gene Ray 06/09/13 HSM 544 Case Study 2 powerful despite its 0# shortage as compared to social insurances. Therefore the more powerful government involvement is often 4uestioned in regards to the the health care industry cost and 4uality. ;ith the 4uality of healthcare services deteriorating in low income areas ma3es even more difficult to help change America, which is already rapidly changing for the worst. Americans are increasingly become poorer. .ore poor people will create a higher demand for government assisted healthcare programs but the physicians that may be on these program plans may provided less than desirable service due to the demographic areas. <urther, "the fact that people in poor health often have low incomes as a result of their health problems is an increasingly important driver of efforts to e1pand eligibility for public insurance" )=wart>, "&&%-. These issues lac3 the appropriate response since millions of people who fail to 4ualify for government assistance, are turned away by private insurance due to chronic illness or other factors, or who wor3 for employers who do not provide health insurance and cannot afford to purchase it alone. In .arch of "&$& the Affordable ?are Act )A?A- was signed. The Affordable ?are Act is the nation@s health reform law enacted in .arch "&$&. It contains numerous provisions that will e1pand health coverage to 0& million Americans, increase benefits and lower costs for consumers, provide new funding for public health and prevention, bolster our health care and public health wor3force and infrastructure, foster innovation and 4uality in our system, and more. The law consists of two pieces of legislationA the rotection and Affordable ?are Act ) atient

A?A-, enacted on .arch "0, "&$&, and the +ealth

?are and Bducation Ceconciliation Act )+?BCA-, enacted on .arch 0&, "&$&. Dointly they are referred to as the Affordable ?are Act or A?A. )The Affordable ?are ActA +ow it helps you.

Gene Ray 06/09/13 HSM 544 Case Study 2 )n.d.-- Also in this new act is the re4uirement for businesses to provide their employees with health care coverage if they have :& or more employees. If they do not provide insurance they will have to pay a ta1 which will be used by the government to provide those individuals whom cannot healthcare with healthcare. .any states have retaliated against this new act and considering it unconstitutional and with this situation alone, one may be able to determine the role of this government and its need to change due various ridicule approve arrangements. Increasing government programs in the healthcare industry may offer some sort of cost control, this may help the people that do not 4ualify of .edicare or .edicaid, the not so old or poor and can be useful for them. Actions such as these may alter the current price increases and create opportunities for investments. In the concern with the growth of the healthcare sector, there still needs to be more /obs provided even though the industry has created more than "&&,&&& /obs in Danuary "&$" but there are still more than $" million Americans without a /ob. The potential growth of this sector is unimaginable since it can create various opportunities. ;ith demand for health care growing at a rate twice that of the national economy, the industry is on trac3 to create 5.6 million ne !o"s "y 2020, according to a new study from Georgetown Eniversity@s ?enter on

Bducation and ;or3force )2erman "&$"-. The continuation of the innovation of technology, the abundance of /obs may be not to farfetched. There are still numerous diseases and new illness that have evolve and have become resistance to many drugs and these issues continue to plague our nation and only advance technology came amount to this new age of viruses and diseases. Diseases such as type II diabetes, obesity, heart disease, Al>heimers, and dementia

Gene Ray 06/09/13 HSM 544 Case Study 2 continue to plague our country especially for the elderly. ;ith many of the baby boomers entering the age were they will need geriatric care is increasing and many Americans will be in high demand for health services. Therefore investment in renovating clinics, nursing homes and any other health care facilities that houses the elderly for health services need to be made in order to 3eep up with generation of technology advances. Few technology would be able improve the lives of senior citi>ens and also 3eep the current status their well being. Today, as the incidence of chronic illness e1plodes, chronic care management remains e1pensive, labor intensive, and plagued by wide variations in the effectiveness of care. 2y "&$:, we believe chronic patients will be empowered to ta3e control of their diseases through IT5enabled disease management programs that improve outcomes and lower costs ) #$M #nstitute %or $usiness &alue. '2006((.

CeferencesA )*e +%%orda"le Care +ct, Ho it *el-s you. 'n.d.(. ..S. /e-artment o% Healt* 0 Human Ser1ices.

Gene Ray 06/09/13 HSM 544 Case Study 2 Retrie1ed 2une 93 2013 %rom *tt-,// .*ealt*re%orm.4o1/inde51.*tml

$a"y "oomer *ealt* care crisis looms. '2006(. Science Daily. Retrie1ed 2une 93 2013 %rom *tt-,// .sciencedaily.com/releases/2006/04/060417111300.*tm

Healt*care. '2011(. Career Guide to #ndustries3 2010811 9dition. $ureau o% :a"or Statistics3 ..S. /e-artment o% :a"or. Retrie1ed 2une 93 2013 %rom *tt-,// ."ls.4o1/oco/c4/c4s035.*tm

Morrisey3 M. +. '2006(. #s *ealt* care di%%erent; )*e concise encyclo-edia o% economics, Healt* care. Retrie1ed 2une 93 2013 %rom *tt-,// .econli".or4/li"rary/9nc/Healt*Care.*tml

<e -ort3 =. '2009(. Costs3 Go1>t in1ol1ement to- *ealt*care re%orm concerns. Retrie1ed 2une 93 2013 %rom *tt-,// .4allu-.com/-oll/124331/Costs8Go1?27t8#n1ol1ement8)o-8Healt*care8

Re%orm8Concerns.as-5 S art@3 A. '2009(. Healt* care %or t*e -oor, =or *om3 *at care3 and *ose res-onsi"ility; Focus3 26'2(. Retrie1ed 2une 93 2013 %rom *tt-,// .ir-. isc.edu/-u"lications/%ocus/-d%s/%oc262l.-d%

&an Horn3 G. '2010(. +4in4 "oomers liBely to "oost *ealt* care sector. IBISWorld. Retrie1ed 2une 93 2013 %rom *tt-,// ?20re-ort.-d% $erman3 2. '2012( Healt* Care #ndustry Cill Create 5.6 Million More 2o"s $y 2020, Study. Huffington Post Retrie1ed 2une 93 2013 %rom *tt-,// creationDnD1613479.*tml .*u%%in4ton-ost.com/2012/06/21/*ealt*8care8!o"8 .i"is orld.com/Common/MediaCenter/*ealt*care?20s-ecial

#$M #nstitute %or $usiness &alue. '2006(. Healt*care 20E5, Cin8 in or lose8lose; Retrie1ed 2une 93 2013 %rom *tt-,// 8935.i"m.com/ser1ices/us/4"s/"us/-d%/*ealt*care20158 in8 inDorDlose8

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