Sectors: Health

 

Health insurance, healthcare and the pharmaceutical industries are all hot topics today.

Digest these facts for a moment:

Health care costs continue to rise rapidly in the U.S. and throughout the developed world. Total U.S. health care expenditures are projected to increase from $2.39 trillion in 2008 to $2.72 trillion in 2010, with annual increases averaging about 7%.

That's TRILLION DOLLARS.

The health care market in the U.S. in 2008 was made up of

• hospital care (about $747.1 billion)
• physician and clinical services ($501.7 billion)
• prescription drugs ($247.0 billion)
• nursing home and home health ($198.5 billion)
• dental care ($102.4 billion)
• other items totaling $597.6 billion

Globally, the total prescription drug market was in the $550 billion range in 2007.

Federal spending on Medicaid and Medicare accounted for about 21.9% of all federal government expenditures as of 2007.

Federal Medicare expenditures, excluding patients' premiums, totaled $378.6 billion in 2006 and $432.6 billion in 2007. For 2008, that amount was projected to grow to $457.5 billion.

No doubt there is money in the healthcare industries, and that means potential profits as well.

Technology and innovative medical practices will take the lead in lowering these costs over time. More effecient medical practices, techniques and knowledge will improve a system that is currently at the breaking point.

We are now entering what will long be remembered as the beginning of the Biotech Era. Breakthroughs in diagnostics and drug therapies are occurring at a rapid pace, creating financial and ethical challenges along with opportunities.

Economics are a powerful force to make changes happen.

Those companies looking at streamlining and effeciency will be the clear winners here. Innovative pharmaceuticals, non-invasive surgeries and better diagnosis through technology will all be snatched up by the healtcare industry struggling to keep costs down and negative public perception at bay.

We at MW Market Movers are keeping a sharp eye on the industry for possible profits from the small innovative leaders. Stay tuned.