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1、Country Industry Forecast: U.S. Healthcare Industry 20024559-90#4559-90 2003 Frost two members are elected from each of the fifty states by a popular vote2. Membership term is six years and one-third of the members are elected every two years3. The Senate that was controlled by the Democratic Party
2、before the mid-term elections in 2002 is currently controlled by the Republican Party4. The next elections for the House are due in November 2004#4559-90 2002 Frost restraining government spending, and enforcing the highest ethical standards inCorporate America. Measures for promoting long-term econ
3、omic growth include making taxrelief permanent, expansion of trade, terrorism insurance, and educational reforms.International trade is given the highest importance as a means to increase the growth rate ofthe economy. The President signed the Trade Act of 2002 that authorizes him to establish theTr
4、ade Promotion Authority (TPA) to encourage exports by identifying the regions with thepotential to increase trade.The proposed TPA is likely to create more trade opportunities for U.S. exports. The benefitsof expanded trade opportunities are:IIncrease in the demand for U.S. goods and servicesIRise i
5、n employment opportunities with higher paying jobsIIncrease in productivity and opportunity to tap the most productive workforce in theworldIEconomic securityThe increasing budget deficit is one of the factors which the democrats blame forinappropriate spending polices. They blame the Bush Administr
6、ation for the mismanagementof the federal budget that registered a deficit in 2001 and is expected to continue till 2004, asper the budget estimates for 2003. The primary reasons attributed to the reversal in the trendare the tax relief plan, expenditures related with the terrorist attacks, and fall
7、 in the revenueforecasts due to poor economic conditions.Some economists are of the opinion that thetiming of the tax relief measures announced in 2001 prevented the economy from worseningthe recession and helped it to recover in 2001. To check the increase in the federal deficit, theadministration
8、is in favor of cut down in federal spending.Educational ReformsThe Administration recognizes the importance of declining educational standards and theirimpact on the competitiveness in the long run. By empowering schools with more authorityand making them accountable, the educational standard is pla
9、nned to be improved #4559-90 2002 Frost prices as measured by PPI decreasedIHome health service prices increased to 3.2 percent (PPI) due to rise in Medicare home health reimbursement rates in 2002Prices of health services are very high in the United States when compared to other developedcountries
10、due to the following reasons:IHigh research and development expenditure by the pharmaceuticals MB-Medicinal and Botanicals PP-Pharmaceutical Preparations; BP-BioproductionSource: Frost geographicdiversification (satellite ambulatory care centers surrounding hospitals); and non-healthcare diversifica
11、tion(day care centers).IPhysicians entering into joint ventures with medical consulting and marketing firmsIPositive outlook in the future for the home healthcare market primarily due topopulation and demographic changesOne issue that overshadows all others in the healthcare industry, whether a prov
12、ider or apayer, is the rising prices of both drugs and specialized services. Expensive new drugs andsurgical procedures are being demanded more by the aging population. All these indicate thathealthcare services are expected to be more expensive in 2002 and after.The projected scenario is that emplo
13、yers, employees, and other insurance members are likelyto continue to demand access to a wide variety of healthcare providers. As long as there is aneed for good health, there is expected to be a market for healthcare.There are major future implications for all firms that are associated with the U.S
14、. healthcareindustry. These are as follows:IThe Federal, state, and local government agencies play a dual roleas both buyers and providers of healthcare services. Through Medicare, Medicaid, and Maternal and Child Health, and other programs, the Federal Government is the largest buyer of health serv
15、ices and is also a major direct provider of healthcare services.IHealthcare costs are increasing faster than the consumer price index (CPI) and it is predicted that they are expected to continue to rise. Government hospitals and healthcare facilities could be under pressure to reduce their costs bec
16、ause similar services are provided by large national corporations at lower costs. INiche market opportunities could emerge due to the need to evaluate various healthcare services. The role and cost of healthcare research & development and education are likely to change drastically for the better. This is because research and education could benefit society, which in turn could make government funds have an increasing and more productive role to play.IBusinesses and the ind
