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Week 5 Case Study: Investment Potential in the Healthcare

In: Business and Management

Submitted By cbea1979
Words 1159
Pages 5
Week 5 Case Study
HSM 544
Healthcare Industry
The American health care industry is one of the nation's largest and most profitable industries (Healthcare, 2011). The American healthcare industry "has consistently increased its share of GDP from only 7.2% in 1970 to more than 16.0% in 2008" and that figure is still growing (Van Horn, 2010). It is also one of the few American industries that is expected to grow in the next few decades. In fact, the healthcare industry in America is expected to generate 3.2 million new jobs through the year 2018, which is more than any other American industry (Healthcare, 2011). This industry includes everything "from small-town private practices of physicians who employ only one medical assistant to busy inner-city hospitals that provide thousands of diverse jobs" (Healthcare, 2011). It includes things such as doctors' offices, phlebotomy laboratories, research laboratories, outpatient care centers, nursing homes, residential care facilities, clinics of all sizes, and large hospitals (Healthcare, 2011). It is not only a large industry, but a very broad one with many potential investment opportunities and many potential risks.
Government and Healthcare
The role of government in the healthcare industry is a topic that leads to very active and divisive debate. People are either of greater government involvement or deeply opposed to any government involvement. Currently, healthcare remains an industry with a high degree of regulation, in terms of state and federal law as well as in payment terms, but it is also an industry where private ownership and private arrangements for obtaining and paying for care are significant. "Federal and state governments ... together ... account for 46 percent of national health care expenditures; nearly three-quarters of this is attributable to Medicare and Medicaid" (Morrisey, 2008). The remaining 49%…...

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