The Business of Healthcare

THE BUSINESS of HEALTHCARE With insurance premiums continuing to rise, a population growing increasingly divided on how to fix the healthcare system, and public health taking a backseat to corporate interests, many are losing their hope for a healthy future. Healthcare costs are spiraling out of control, but where does this unprecedented amount of spending go? See how your healthcare dollars are spent and take a look at the profits of some key players behind the healthcare scene. HEALTHCARE: THE BIGGEST BUSINESS OF THEM ALL $4 2012 $2.8 TRILLION 25% $3.5 TRILLION 2016 $1 out of every $6 spent in the U.S. is spent on healthcare $2.8 trillion in U.S. healthcare spending estimated in 2012 Projected to hit $3.5 trillion in 2016 At this rate, healthcare spending will account for 25% of the GDP by 2025 60% of bankruptcies in the U.S. are a direct result of 3/4 of these bankruptcies are filed by individuals who have health insurance overwhelming medical bills ROUND & ROUND: TRACKING HEALTHCARE SPENDING WASTED SPENDING REDUNDANT PROCEDURES 24 HOSPITALS OVERCHARGING PATIENTS $765 b. $210 b. $10 b. $210 billion is spent each year on procedures performed entirely out of fear of liability rather than need $10 billion: Estimated amount hospitals overcharge Americans each year Estimated annual amount of wasted healthcare spending: $765 billion. That's 1/3 of healthcare spending! Where do our healthcare dollars go? Investment Nursing & continued care Other Government administration Dental & other Prescription drugs Physicians & clinics Hospital care DISEASE PROFITEERS +56% 2,700,000 +180% 1999 2009 56%: Increase in insurance 2.7 million: Number of Premiums for small provider profits in 2009, during the height of the economic downturn employers increased 180% between 1999 and 2009 Americans who could no longer afford coverage $390 1,546: Number of healthcare lobbyists in D.C. That's 3 lobbyists for every member of Congress! $390: Amount spent every second by healthcare lobbyists while fighting the healthcare reform bill in 2010 KEY PLAYERS (% CHANGE IN PROFITS FROM 2010) Pharmaceuticals +629% Merck reduced R&D spending by $1.1 billion since 2009 while also paying less in taxes Medical facilities Insurance industry +104% Pharmacy services +73% +18% +21% +11% -8% +9% -28% +2% +8% -35% Universal DaVita United WellPoint Humana Health Medco Express Health Scripts Solutions Holding Diagnostics НСА Pfizer Merck Holdings Health Services Johnson & Johnson Quest Group Brought to you by: BestHealthcareMBA.com SOURCES http://www.plunkettresearch.com/health-care-medical-market-research/industry-and-business-data http://www.areganlive.com/business/index.sst/2011/07/us_health_care_spending_to_rea.html http://www.regence.com/transparency/regence-and-reform/what-drives-up-health-care-costs.jsp http://www.businessinsider.com/statistics-about-the-health-care-industry-2011-2?op-1 http://www.businessinsider.com/whats-wrong-with-the-healthcare-system2010-3 http://abcnews.go.com/Health/HealthCare/health-insurers-post-record-profits/story?id-9818699 http://unitedrepublic.org/health-care/ http://money.cnn.com/magazines/fortune/fortune500/2012/industries http://seekingalpha.com/article/431101-merck-s-transition-will-make-it-a-more-profitable-company %24 % 24