By Christopher Wolfington
While it is extremely easy to focus on the negative aspects of the United States healthcare system, and it is natural to do so, the healthcare system is not merely a negative factor in the country. The healthcare industry is one of the most important industries for the U.S. economy. It provides jobs and the economic impact contributes positively to many communities.
Here are three signs that the healthcare industry is doing good for the United States economy.
1. Medical device industry is booming
As technological advancements speed ahead at an extreme space, they touch every conceivable industry. The healthcare industry is not immune to the technological revolution. Medical devices help diagnosis and treat ill patients more quickly and efficiently. In 2018, the medical device and product industry is booming.
The U.S. is the largest medical products market in the world and has seen the price of its medical products company stocks increaseby 21% in 2018. This segment of the healthcare market has accrued over $180 billion in revenues in 2018, and the U.S. industry is poised to lead the global medical device tech market to a compound annual growth rate of 4.6% by 2025.
2. Healthcare startups raising lots (and lots) of money
The overall health of the healthcare economic market combined with the below average effectiveness and efficiency of the healthcare market in the United States has made for a ripe space for startup incubation. Indeed, growth in the startup space has been rather extreme. Venture capitalist investments into healthcare startups has increased by 70%over the last year.
In September 2018, 135 healthcare startups raised an eyebrow-raising combined total of $2.8 billion, working out to about $20.7 million per deal. These startups are bringing a fresh approach to healthcare and innovation in solving the problems of the healthcare industry. In many industries, startups have disrupted the status quo so much as to make the previous status quo almost unrecognizable—Amazon, Uber, Facebook. It might be only a matter of time before the same happens to the healthcare industry.
3. Job growth continues
The healthcare industry provides millions of jobs across the United States, and careers in the industry are relatively stable and have the benefit of not being location-specific. Job growth in the healthcare industry has persisted as well. In September 2018, healthcare added 25,700 jobs, 12,000 of which were specifically for hospitals, according to the U.S. Bureau of Labor Statistics. Throughout all of 2018, healthcare employment has increased by 302,000.
While there are certainly many negatives about the U.S. healthcare system, its continued employment and contribution to the economy is indeed a vital part of the U.S. economy.