Healthcare: Introduction


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 privately or publicly.

The Healthcare industry is Highly Fragmented. The production in this industry is divided among many different companies, no single firm has large enough share of the market to be able to influence the industry's direction or price levels.

Primary Demand Drivers

  • Population growth rate
  • Increasing life expectancy age in developed countries
  • Advances in medical care and technology
  • Patients who demand more services, pharmaceuticals, and medical breakthroughs

Profitability Drivers

  • Obtaining grants and federal funds
  • Effectively managing patient demand
  • Referring patients to the most cost-effective providers