1. Health Care Industry 1
HEALTH CARE INDUSTRY
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2. Health Care Industry 2
HEALTH CARE INDUSTRY
Introduction
Health care industry is the most prevailing and important industry in the globalized
world. It is developing at a high pace with the help of new emerging technologies and future
prospects of economical development (Munchus, Roberts, Rivers & Gingerich, 1999). Here in
this report an analysis have been made with the past, present and future of the health care
industry in relation to its finance, economics and technology. This report shows how health care
industry has changed in the last few years and what the scopes of growth for this industry are in
the coming years. To complete this report an analysis has been made with the changes that the
industry has faced in the last 10 years, the current status of the industry and the future aspect of
the health care industry. What technological changes have the industry faced along with the
finance sources and economical development of the industry. The report is presented in three
stages as given below:
Past
During last 10 years from about 2003 to 2013, the health care industry has become
advanced and lots of major changes have been evident in the last few years. The health care
industry has been emerged to be one of the most successful industries with no recession and
downtime (Linden, 2010). It has evident a lot of technological advancement and various
financial supporters have started providing backup to this industry as a scope of growth has been
analyzed from this industry.
Technology is the main supporter of development of health care industry. With the
changing technology, health care industry has also sought growth. New machineries have been

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invented for proper health care. In the last 10 years, medicines have been found for many none
curable diseases and new systems have been developed with the help of developing technology
to serve the society in better way. New machineries have been developed to meet the growing
need of the industry. MRI, CT scan technology have been developed. Medicines for cancers first
stage and lot more diseases have been invented.
The increased expenditure on high level of technological development has made the industry
face an economical and financial crisis at the beginning of the 21st century. It was not possible
for the government to support the high level of expenditure in this industry. Due to this the
industry faced a lot of difficulties in the developing countries that does not have sufficient
amount of finance for supporting this industry. Several health institutions were developed and
the World Bank and International Monetary Fund started supporting this industry in several
underdeveloped and developing countries. As investors found this industry to have a good scope
of growth, they stared investing in this industry in the last few years. This industry has become
the most growing industry of the world.
In the earlier days it has been seen that government were the only investors of health care
industry. Few privates firms were financed by private owners. But in the last 10 years the finance
and economical changes have been evident in the health care industry. Due to high level of
development with the emergence of the globalized world, the fiscal need of the industry has
increased in the last 10 years. It was not possible only for the government to support the
increased need of expenditure for the industry. Hence, it made the private investors and financial
institution to take interest in this industry. As this industry has a valid scope of growth. Hence,
several private financial institutions also started providing finance to this industry. The example

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of national expenditure in the last ten years in USA has been presented in the table below to
show the financial and economical growth in the last 4 years.
National Health Expenditures (NHE) Amounts And Annual Growth, By
Spending Category, Calendar Years 2009–12 (USA) [Posted by NCSL
January 2014]
Spending category 2009 2010 2011 2012
Expenditure
amount
NHE, billions $2,504.20 $2,599.00 $2,692.80 $2,793.40
Health consumption
expenditures 2,358.00 2,449.60 2,534.90 2,633.40
Personal health care 2,117.40 2,192.90 2,271.20 2,360.40
Hospital care 776.8 812.6 840.8 882.3
Professional services 672.4 694.2 720.9 752.3
Physician and clinical
services 503.2 519 540.1 565
Other professional services 66.8 69.8 73.1 76.4
Dental services 102.5 105.4 107.7 110.9
Other health, residential,
and personal care 122.5 128.1 132.3 138.2
Home health care 67.2 71.2 74 77.8
Nursing care facilities and 138.5 143 149.2 151.5

5. Health Care Industry 5
continuing care retirement
communities
Retail outlet sales of
medical products 339.9 343.9 354 358.3
Prescription drugs 254.5 255.7 262.2 263.3
Durable medical equipment 35 37 39.1 41.3
Other nondurable medical
products 50.3 51.2 52.8 53.7
Government administration 29.8 30.5 32.8 33.6
Net cost of health insurance 136.7 150.9 157.6 164.3
Government public health
activities 74.1 75.3 73.3 75
Investment 146.2 149.4 157.8 160
Noncommercial research 45.4 49.1 49.7 48.1
Structures and equipment 100.9 100.3 108.2 111.9
Annual growth
NHE, billions 3.80% 3.80% 3.60% 3.70%
Health consumption
expenditures 4.5 3.9 3.5 3.9
Personal health care 5 3.6 3.6 3.9
Hospital care 6.6 4.6 3.5 4.9
Professional services 3 3.2 3.8 4.4

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Physician and clinical
services 3.4 3.1 4.1 4.6
Other professional services 4.4 4.6 4.6 4.5
Dental services 0.1 2.8 2.2 3
Other health, residential,
and personal care 7.9 4.6 3.3 4.5
Home health care 8 5.8 4.1 5.1
Nursing care facilities and
continuing care retirement
communities 4.5 3.2 4.3 1.6
Retail outlet sales of
medical products 4 1.2 3 1.2
Prescription drugs 4.9 0.4 2.5 0.4
Durable medical equipment 0.4 5.6 5.6 5.6
Other nondurable medical
products 1.7 1.8 3 1.8
Government administration 1.3 2.4 7.3 2.7
Net cost of health insurance −1.8 10.4 4.5 4.2
Government public health
activities 3.6 1.6 −2.6 2.3
Investment −5.3 2.2 5.7 1.4
Noncommercial research 3 8.1 1.2 −3.1

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Structures and equipment −8.6 −0.5 7.8 3.4
Health care industry has provided a lot of economical benefits to the economy of the
country. It has helped the economy by providing employment and scope of livelihood to several
people (Freeman, Hawkes & Bennett, n.d.). This industry serves a huge population by providing
their daily livelihood. The graph below shows how employment has been increased in the world
with the development of the health care industry. The graph shows the figure for last 10 years
from 2003 to 2013 keeping 2003 as base year.
Source: (Thompson, 2013)
Present
Health care industry has become dependent on technological development because of its
dependency on the highly efficient machineries and technical systems. Several laws and

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regulations have been developed that controls the working of the health care industry. It focuses
on providing better services to the patients with proper system of health care. Several
technological developments have been seen in the field of internet use. The health care system
has seen an online system development in the present years. This helps the health care
professional to provide better services to the patients.
With the technological development there emerges a need of financial backup for the
health care industry. In present day the industry is financed by the international monetary
organizations and health organizations for the developing countries. It has been found that US
has spend around $3 trillion in the year 2014 in the health care industry and this expenditure is
forecasted to rise at a rate of 5.6% in the year 2015. For providing the financial backup the health
care industry needs the help of the private investors and financial institutions that helps the
industry in exchange of profit. Several health insurance companies also provide finance to the
people for maintaining the health and safety. This is a source of using the public money in
financing the health care industry.
There are several types of payment methods that have been used in the health care
industry in the present period (Dhooper, 2012). These methods are like direct financing by
private mechanisms that includes self financing, charity financing, indemnity insurance and
commercial insurance. Health industry also uses the public financing mechanism in the form of
government financing, international institutional financing etc. as it has been known that the
industry needs a huge amount of finance to fulfill its need of technological development; it needs
the backup of both type of mechanism.
Future

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It is important to know the future aspect of the industry in the existing market and what
changes will occur in the industry. Here in this section the occurrences of the technological
changes have been discussed in the health care industry and the effects of the changes in the
development of the industry has also been analyzed. The industry will see more changes in the
use of technology in the coming future. Health care apps have been developed with the emerging
technology of smart phones. It is important to know how much the new technologies will be
capable of meeting the growing needs of the health care industry.
It has been forecasted that the growing technology will need growing financial backup
for the industry. With the development of technology and automatic machines and robotic
system the need for employees will decline in the coming future that will increase the reduction
of employees in this sector. This will adversely affect the economy of the globalized world. With
the increasing standards of the modern health care system the cost and expenditure of the
industry also increases. It has been estimated that the rate of increase of the expenditure will be
about 6% every year and will reach to 10% in the coming ten years. This is all because of the
increasing technological modernization of the industry.
With the increasing monetary needs that industry will need more financial backup that
will be supported by several payment mechanisms (Brymer, 1995). As it is already discussed that
the health care’s industry uses two different types of payment mechanisms which helps to gather
financial backup for the industry. In future the industry needs to develop new mechanism for
financial support. New systems of gathering finance needs to be developed to meet the growing
need of the industry. The biggest changes in the health care industry will be the way the industry
serves the society. The industry will develop new systems that will be more human friendly and

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people will be able to take self care with the help of the system. This will reduce the burden and
pressure on the industry.
Conclusion
With proper study of the health care industry it has been seen that the industry has
development at a great pace in the last 10years and it is the only industry that will never face a
recession. It is such an industry that has a good scope of growth. A lot of technological
development has been seen in the last few years that will be followed by some new advancement
in the coming years. With the advancement in the technology, the industry will see several
changes in the fiscal policy and development in the economy.

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References
Brymer, R. (1995). Hospitality management. Dubuque, Iowa: Kendall/Hunt Pub. Co.
Dhooper, S. (2012). Social work in health care. Los Angeles, Calif.: Sage.
Freeman, M., Hawkes, S., & Bennett, B. Law and global health.
Linden, R. (2010). The rise & fall of the American medical empire. North Branch: Sunrise River
Press.
Munchus, G., Roberts, V., Rivers, P., & Gingerich, B. (1999). The US Home Health Care
Industry: Past, Present, and Future. Home Health Care Management & Practice, 11(5), 21-
30. doi:10.1177/108482239901100507
Thompson, D. (2013). A Truly Astonishing Graph of the Growth of Health-Care Jobs in
America. The Atlantic. Retrieved 15 February 2015, from
http://www.theatlantic.com/business/archive/2013/07/a-truly-astonishing-graph-of-the-
growth-of-health-care-jobs-in-america/277454/