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8Sep, 2022
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The Economics of Healthcare – Part 10

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Though we have presented on a historical basis that healthcare has been recession proof, it does not mean that there are not issues in healthcare that create major problems in good times and in bad times. I have told many students and investment bankers that with healthcare comprising over 20% of the U.S. economy, there is always a part of the industry that is on fire and one that is melting down. Today, insurance companies are on fire as companies continue expanding into healthcare. As we mentioned previously, we are […]
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25Aug, 2022
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The Economics of Healthcare – Part 9

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On August 4, 2022, the President of United States Joseph R. Biden Jr., signed in to law the Inflation Reduction Act of 2022 (IRA)[1]. This comprehensive law covered many areas, including healthcare (our sole focus), clean energy and taxes according to The White House release[2]. Without getting political, let’s look at what is promoted by those sponsoring the new law. The following is a section The White House noted : HEALTH CARE Cutting Prescription Drug Cost Today, Americans pay two to three times what citizens of other countries pay for prescription drugs. […]
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18Aug, 2022
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The Economics of Healthcare – Part 8

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We’ve received some excellent feedback from our readers, and we are encouraged to hear that this series of blogs has been of value. When we re-titled the blog, The United States of Healthcare (SM), it was to point out how the number one industry in the U.S., for consistently recuring expenditures regardless of the market and Gross Domestic Products (GDP), was healthcare. Frankly, it appears that this will remain so for surely at least the next decade. The basic driver is plain and simple demographics. We have also noted in […]
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10Aug, 2022
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The Economics of Healthcare – Part 7

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With the U.S. facing yet another recession of unspecified depth and duration, widespread economic issues, some exacerbated by the Russia-Ukraine conflict, we have an abundance of economic news. These reports are showing a precarious situation for the U.S. economy.  For the very first time in decades, the healthcare sector accounts for a solid 20% of the U.S. economy, and it may be showing some signs of lagging in healthcare cost relative to inflation. We have a few points to discuss.  First, let’s start with one that is so historic it […]
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2Aug, 2022
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The Economics of Healthcare – Part 6

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Last week, we all witnessed a great deal of economic data and actions by the U.S. Federal Reserve. The Federal Reserve’s Federal Open Market Committee (FOMC) decided that the U.S. inflation rate was too high, and that warranted an increase in the U.S. Federal Funds interest rates. They increased rates by 75 basis points or 0.75%, what is considered an extra ordinary increase. As we have noted, major U.S. banks are very concerned that extremely high inflation will force the FOMC to cause a U.S. recession. We have noted before […]
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26Jul, 2022
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Breaking News: Amazon To Acquire One Medical

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Breaking News: Amazon To Acquire One Medical We have been publishing a series on The Economics of Healthcare; however, this news is too big to delay our reaction. This morning, July 21st around 9 am, an incredible alert popped up my computer screen from the Wall Street Journal – “Amazon to buy One Medical for $3.9 Billion.” Within the hour, One Medical (ONEM) stock was up 66%, as was Amazon’s stock (AMZN) increasing over 3%. This news is a big deal and I decided to take the opportunity today to explain why. I […]
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20Jul, 2022
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The Economics of Healthcare – Part 5

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Healthcare as the new “Plastics?” Last week, in Part 4, I mentioned healthcare was the new “plastic” recalling the 1967 movie, The Graduate. My family and I arrived from Cuba around the time of that movie. As life would have it, by 1968, my father was working in a plastic manufacturing company in Miami, Florida (one of his two jobs he had at the time). I don’t remember our conversation exactly however, I recall him telling me how he would mix material, heat it, and it created their products. The irony […]
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14Jul, 2022
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The Economics of Healthcare – Part 4

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In today’s blog, we’re going to dive deeper into the U.S. National Healthcare Expenditures (NHE) for 2021, and will continue through the first half of 2022 in Part 5. I believe you will be surprised at what we see in the data. Also, we will compare this data to the information on the overall U.S. economy. As I write this, the Euro had reach below par with the US Dollar, something we have not seen for over two decades! This was on the heels of the U.S. reporting that Year-Over-Year […]
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12Jul, 2022
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The Economics of Healthcare – Part 3

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The Economics of Healthcare Revisited July 2022, Part 3 On Friday, July 8, 2022, some big news was headlined on CNBC.com[1], “Payrolls increased 372,000 in June, more than expected, as jobs market defies recession fears.” The fascinating part of this is not just the growth in employment, but also how different it was from the other months that “leisure + hospitality” had the biggest gains.  This time, it was back to the standard that “healthcare + social assistance” lead the growth, though growth in the “Professional” category and in “Leisure […]
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7Jul, 2022
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The Economics of Healthcare – Part 2

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In Part 1 of our new blog series, The Economics of Healthcare – Recession, we addressed what I see as the macro of healthcare economics, and its several roles in the U.S. economy. In Part 2, I want to respond to some of the issues and questions posed from the previous blog. The Bureau of Economic Analysis will announce when the U.S. has entered or departed a recession, and generally their rule is two consecutive quarters of contractions of Gross Domestic Product (GDP). Unfortunately, for those of us with the patience of a […]
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