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    Health Care Sector Industry Profile

    Report Page Length: 10-12
    Last Quarterly Update: 3/29/2021
    SIC Codes: 4119, 4522, 8011, 8021, 8031, 8041, 8042, 8043, 8044, 8049, 8051, 8052, 8059, 8062, 8063, 8069, 8071, 8082, 8092, 8093, 8099, 8322, 8331, 8351, 8361
    NAICS Codes: 62
    Chapters Include:
    Industry Overview Trends & Challenges Industry Forecast
    Quarterly Industry Update Call Prep Questions Website & Media Links
    Business Challenges Financial Information Glossary & Acronyms
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    Excerpt from Health Care Sector Industry Profile

    Companies in this industry provide a wide range of health care and social services through hospitals, doctors' offices, nursing homes, outpatient surgery centers, and other facilities. Major companies include Ascension, HCA Healthcare, Kaiser Permanente, and Tenet Healthcare (all based in the US), as well as Fresenius (Germany), National Hospital Organization (Japan), and Ramsay Health Care (Australia).

    Worldwide, health care expenditures reached $8.3 trillion between 2000 and 2018, or about 10% of global GDP, according to the World Health Organization. Total health spending (both public and private) as a portion of GDP among industrialized nations ranges from about 4% in countries such as Turkey to about 17% in the US, according to the Organization for Economic Co-Operation and Development.

    The US health care sector includes about 890,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $2.5 trillion.

    COMPETITIVE LANDSCAPE

    Health care reform efforts in the US and other developed countries are changing how providers are reimbursed for care. More attention is being focused on rewarding or penalizing institutions based on efficiency standards and the quality of care delivered. As pay-for-performance reimbursements are implemented, health companies are consolidating to better compete and negotiate with suppliers and insurers. Slim operating margins and a minimal ability to raise prices makes eliminating wasteful processes essential. Obtaining grants and federal funds is key to profitability in the case of many nonprofit health care ...

     
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