Industry Analysis & Industry Trends
In short supply
The threat of a shortage of primary care physicians may inhibit the industry in the next five years, despite an increase in revenue. Healthcare reform will play a major part in this, boosting demand for industry operators as the number of insured people grows. Still, revenue will continue to grow, stimulated by an incentive program for Medicare and strong overall demand... purchase to read more
Industry Report - Industry Investment Chapter
Healthcare is a labor-intensive sector, and much of that labor is highly skilled and highly paid. For each dollar spent on labor in the industry, about $0.05 is spent on capital. Labor costs account for about 44.1% of total revenue, whereas depreciation and amortization expenses represent about 2.0% of total revenue. Primary care physicians must be compensated at a high enough level to recoup educational costs and to entice medical students to pursue careers in the field.
There is a high level of personal care in most healthcare industries, since patient-doctor interaction is necessary in order to improve health. Doctors are well-educated and possess a high level of skill, which results in them being well-paid for their services... purchase to read more