Economic Factors Affecting Health Care Industry
The health care industry, also known as medical industry, is a collection of sectors within the economic system that offer goods and services to treat patients with precautionary, curative, rehabilitative and palliative care. It is one of the fastest-growing and the largest industries in the world. Healthcare industry consumes over 10% of the GDP especially in developed countries. Despite forming a vast part of a countries economy, there are notable economic factors that impact this sector.
Investing in the health care sector is not an issue to contemplate about and pour vast amount of money on. It is wise to come up with a multifaceted approach in order to perfectly fathom the underlying forces. Health care expenditures continue to grow very rapidly on the global platform, but many people whether in developed or developing countries are not aware of the many economic factors affecting the health care industry at large.
These factors have made it hard for the medical industry to grow, have the best expertise, facilities and also fail to curb many impediments facing the sector. Here are the core factors affecting the medical industry to easily pick out;
Decrease in funding
There are less funds coming from government, private and public sectors to support health care activities. This has led to loss of jobs as number of staffs in hospitals or medical centers has been cut-down. Nurses and doctors are overworked and under-paid and this has led to reduced productivity. Lack of funds to support health care centers have seen many patient suffer in silence with no beds and food to rely on. Surgeries are these days taking long due to lack of enough facilities and the desired expertise.
Large number of uninsured families
With increased cases of unemployment, many people are not able to cater for or have lost their company-funded health insurance. In essence, many families cannot afford to pay and carry insurance on their own. Hence, many are left susceptible to infections and dire consequences like death of a family member.
The high demand for physicians in hospitals is known to trigger an increase in spending. Surprisingly, shortage of experts in the medical industry poses a lot of terrible consequences. This has great effects to patients as they will suffer in silence and fail to get quality care and this may even lead to fatality.
New medical technology
Advent of technology also impacts health care industry. New medical procedures, equipment and processes through which patients get apt medical care have been on a rise. Unfortunately, these new technologies cost money and time making it hard for many health centers to adapt to these technologies. Quality medical care rises with income and so to enjoy better services one needs to invest extensively.
Increased competition from drug providers
Pharmaceutical companies have become quite greedy and the prices for medicines and prescriptions have risen incredibly. These costs affect patients who get these medicines and doctors who administer them. Prescription drugs cost varies from one brand-name to another.
Investing in the healthcare sector demands a lot of research and analysis on how the industry operates. It is more tedious especially due to many economic factors affecting its operations. Government, NGOs and societies need to come up with great ways on how to prevent infections and many other factors affecting human population. Finding the best ways to reduce medical expenditures can aid in the growth of the medical industry.
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