The healthcare industry is tremendously important to people around the world. This industry comprises of different players including hospitals, doctors, nursing homes, diagnostic laboratories, pharmacies, medical device manufacturers, and other components of the health care system. This article can provides an overview of the healthcare industry.
What is Health Care?
Health care (or healthcare) is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, nursing, chiropractic, dentistry, pharmacy, allied health, and other care providers. It refers to the work done in providing primary care, secondary care and tertiary care, as well as in public health.
What is Healthcare Industry?
The healthcare or medical industry, sectors that provides goods and services to treat patients with curative, preventive, rehabilitative or palliative care. The healthcare industry is composed of establishments devoted to prevention, diagnosis, treatment, and rehabilitation of medical conditions. Such treatment may be through providing products or services, and may be provided private or publicly. The modern health care sector is divided into many sub-sectors, and depends on interdisciplinary teams of trained professionals and paraprofessionals to meet health needs of individuals and populations. Healthcare industry is littered with risks and challenges as it is an industry that requires constant innovation under increased regulations.
Importance of Healthcare Industry:
Aging populations and increasingly prevalent chronic diseases are the fundamental drivers creating demand for expansion of lifestyle medical procedures and healthcare industry. There will be huge demand for medical technology products for years to come.
Impact of Healthcare Industry on Economy:
The health care industry is tremendously important to people around the world as well as to the national economies.Healthcare Industry one of the fastest growing industries in the world. Consuming over 10 percent of gross domestic product (GDP) of most developed nations, a correlation exists between income levels and expenditure on health care in various countries. For example, some of the large developing economies, such as Brazil, India, China, and Russia, spend less on health care than more industrialized economies, such as the United States or France.
The health care industry also plays an important role as being the largest employer in the global economy, if we add up the number of people working in each sector across the world. In most countries, the employment growth rate of the health industry is higher than that of other industries. However the healthcare industry as it exists today is highly fragmented and divided among many different companies and different players. No single firm/corporation has large enough share/monopoly of the market to be able to influence the industry’s direction or price levels.
Classification of Healthcare Industry:
For purposes of finance and management, the health care industry is typically divided into several areas. As a basic framework for defining the sector, the United Nations International Standard Industrial Classification (ISIC) categorizes the health care industry as generally consisting of:
- Hospital Activities
- Medical and Dental Practice Activities
- Other human health activities
This third class involves activities of, or under the supervision of, nurses, midwives, physiotherapists, scientific or diagnostic laboratories, pathology clinics, residential health facilities, or other allied health professions, e.g. in the field of optometry, music therapy, medical massage, yoga therapy, hydrotherapy, occupational therapy, chiropody, homeopathy, chiropractics, speech therapy, acupuncture, etc.
The Global Industry Classification Standard and the Industry Classification Benchmark further distinguish the industry as two main groups:
- Health care equipment and services
- Pharmaceuticals, biotechnology and related life sciences
Health care equipment and services comprise companies and entities that provide medical equipment, such as hospitals, medical supplies, and health care services, home health care providers, and nursing homes.The second business cluster includes sectors corporations that manufacture biotechnology, miscellaneous scientific services and prescription drugs.
Medical business enterprise (also known as medical travel, health business enterprise or international health care) may be a term at first coined by travel agencies and also the mass media to explain the rapidly-growing apply of traveling across international borders to get health care.
Such services generally embody elective procedures moreover as advanced specialised surgeries like joint replacement (knee/hip), internal organ surgery, dentistry, and cosmetic surgeries. However, together with psychopathology, various treatments, nearly each style of health care, convalescent care and even burial services area unit accessible. As a sensible matter, suppliers and customers area unit unremarkably use informal channels of communication-connection-contract, and in such cases this tends to mean less restrictive or legal oversight to assure quality and fewer formal recourse to compensation or redress, if needed.
Healthcare Providers and Professionals:
A health care provider is an institution (such as a hospital or clinic) or person (such as a physician, nurse, allied health professional or community health worker) that provides preventive, curative, promotional, rehabilitative or palliative care services in a systematic way to individuals, families or communities.
The medical industry is also supported by many professions that do not directly provide health care itself, but are part of the management and support of the health care system. The incomes of administrators and managers, underwriters and medical malpractice attorneys, marketers, investors and shareholders of for-profit services, all are attributable to health care costs.