{"id":4142,"date":"2020-01-30T21:57:50","date_gmt":"2020-01-30T21:57:50","guid":{"rendered":"http:\/\/803.557.mywebsitetransfer.com\/?p=4142"},"modified":"2020-02-03T14:00:15","modified_gmt":"2020-02-03T14:00:15","slug":"the-united-states-of-healthcaresm-part-2","status":"publish","type":"post","link":"https:\/\/pwer.com\/?p=4142","title":{"rendered":"The United States of HealthcareSM (Part 2)"},"content":{"rendered":"\n<p>In\npart one of our blog series, The United States of Healthcare, we have effectively\nthrown down the gauntlet<a href=\"#_ftn1\">[1]<\/a>\nthat \u201chealthcare is the business of America\u201d today and possibly even more so\nfor the next 10-20 years. <\/p>\n\n\n\n<p>Although I \u00a0did not plan to discuss this exact point this week, the news released by the U.S. on the growth in Gross Domestic Product (GDP) got my attention and proved hard to pass up. The release was that 4<sup>th<\/sup>\u00a0quarter GDP in the U.S. economy grew by 2.1%.\u00a0<a href=\"https:\/\/oxiohealth.io\/the-united-states-of-healthcaresm-part-2\/#_ftn2\">[2]<\/a><\/p>\n\n\n\n<p>CNBC\nreported: <\/p>\n\n\n\n<p>WASHINGTON \u2014 The U.S. economy\ngrew 2.1% in the fourth quarter, closing out a year in which gross domestic\nproduct decelerated to its slowest pace in three years amid a continuing drag\nin business investment.<\/p>\n\n\n\n<p>The GDP increase matched the\nthird quarter and met expectations of economists surveyed by Dow Jones. For the\nfull year, the economy grew 2.3%, below the 2.9% increase from 2018 and the\n2.4% gain in 2017, the first year of Donald Trump\u2019s presidency, according to\nthe initial estimate released Thursday by the Commerce Department.<\/p>\n\n\n\n<p>Based\non the following information below, healthcare is not totally identifiable:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>GDP\nis the sum of all the final expenses or the total economic output by an economy\nwithin a specified accounting period.<ul><li>It\ndoes not include the output of its underground economy.<\/li><\/ul><ul><li>The\nBureau of Economic Analysis (BEA) uses four major components to calculate U.S.\nGDP: <\/li><\/ul><\/li><li>Personal\nconsumption expenditures<\/li><li>Business\ninvestment<\/li><li>Government\nexpenditures<\/li><li>Net\nexports<ul><li>Consumer\nspending comprises almost 70% of GDP.<\/li><\/ul><ul><li>The\nretail and service industries are critical components of the U.S. economy.<\/li><\/ul><\/li><\/ul>\n\n\n\n<p><strong>The GDP\nFormula<\/strong><\/p>\n\n\n\n<p><strong>The\nformula to calculate the components of GDP is&nbsp;Y = C + I + G +\nNX.&nbsp;That stands for:&nbsp;GDP = Consumption + Investment + Government +\nNet Exports<a href=\"#_ftn3\"><strong>[3]<\/strong><\/a><\/strong><\/p>\n\n\n\n<p>The\nlink below shows the summary of what the U.S. BEA collected.&nbsp; For more details, you can read through ten\npages of mind-numbing data: <a href=\"https:\/\/www.bea.gov\/system\/files\/2020-01\/gdp4q19_adv.pdf\">https:\/\/www.bea.gov\/system\/files\/2020-01\/gdp4q19_adv.pdf<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"430\" src=\"http:\/\/803.557.mywebsitetransfer.com\/wp-content\/uploads\/2020\/01\/1-1024x430.png\" alt=\"\" class=\"wp-image-4143\" srcset=\"https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/1-1024x430.png 1024w, https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/1-300x126.png 300w, https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/1-768x322.png 768w, https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/1-1536x645.png 1536w, https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/1.png 1679w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Healthcare\nis not much of a direct component in the calculations as it is generally found\nunder services (see below). &nbsp;If you drill\ndown the number, it is about $2.5 trillion (USD) in the component that makes up\nservices. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1520\" height=\"1220\" src=\"http:\/\/803.557.mywebsitetransfer.com\/wp-content\/uploads\/2020\/01\/2-1024x822.png\" alt=\"\" class=\"wp-image-4144\" srcset=\"https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/2-1024x822.png 1024w, https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/2-300x240.png 300w, https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/2-768x616.png 768w, https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/2.png 1520w\" sizes=\"auto, (max-width: 1520px) 100vw, 1520px\" \/><\/figure>\n\n\n\n<p>However,\nbased on numbers calculated by government Actuaries<a href=\"#_ftn4\">[4]<\/a>\nfor the Center for Medicare and Medicaid Services (CMS), we know that\nhealthcare expenditures account for 17.7% of GDP, and it grew by 4.6% in 2018,\nto a total of $3.6 trillion (USD) or the equivalent of $11,172 (USD) per\nperson. <\/p>\n\n\n\n<p>Recently,\nI attended an investment conference and heard a world-famous economist\neffectively say that \u201cMost people have underestimated the strength of the U.S.\neconomy; the American consumer was alive and well.\u201d &nbsp;Furthermore, he stated, \u201cAnyone who discounted\nthe American resiliency, could be making a mistake.\u201d &nbsp;He went on to state, \u201cThe only point of\nconcern or maybe opportunity was U.S. manufacturing that accounts for about 14%\nof GDP.\u201d <\/p>\n\n\n\n<p>Maybe\none of the reasons that the U.S. is resilient is because of healthcare.&nbsp; This reminded me how valid the phrase <em>The\nUnited States of Healthcare<\/em> is becoming as 18% of GDP may effectively grow\nat twice the rate of the economy \u2013 more on this topic to come in Part 3.<br><\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><a href=\"#_ftnref1\">[1]<\/a> <a href=\"https:\/\/www.history.com\/news\/what-does-it-mean-to-throw-down-the-gauntlet\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">https:\/\/www.history.com\/news\/what-does-it-mean-to-throw-down-the-gauntlet<\/a><\/p>\n\n\n\n<p><a href=\"#_ftnref2\">[2]<\/a> <a href=\"https:\/\/www.cnbc.com\/2020\/01\/30\/us-gdp-q4-2019-first-reading.html\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">https:\/\/www.cnbc.com\/2020\/01\/30\/us-gdp-q4-2019-first-reading.html<\/a><\/p>\n\n\n\n<p><a href=\"#_ftnref3\">[3]<\/a> <a href=\"https:\/\/www.thebalance.com\/components-of-gdp-explanation-formula-and-chart-3306015\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">https:\/\/www.thebalance.com\/components-of-gdp-explanation-formula-and-chart-3306015<\/a><\/p>\n\n\n\n<p><a href=\"#_ftnref4\">[4]<\/a> <a href=\"https:\/\/www.cms.gov\/newsroom\/press-releases\/cms-office-actuary-releases-2018-national-health-expenditures\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">https:\/\/www.cms.gov\/newsroom\/press-releases\/cms-office-actuary-releases-2018-national-health-expenditures<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In part one of our blog series, The United States of Healthcare, we have effectively thrown down the gauntlet[1] that \u201chealthcare is the business of America\u201d today and possibly even more so for the next 10-20 years. Although I \u00a0did not plan to discuss this exact point this week, the news released by the U.S. on the growth in Gross Domestic Product (GDP) got my attention and proved hard to pass up. The release was that 4th\u00a0quarter GDP in the U.S. economy grew by 2.1%.\u00a0[2] CNBC reported: WASHINGTON \u2014 The [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":4151,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/pwer.com\/wp-content\/uploads\/2020\/01\/AdobeStock_69975249-scaled.jpeg","_links":{"self":[{"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/posts\/4142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/pwer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4142"}],"version-history":[{"count":2,"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/posts\/4142\/revisions"}],"predecessor-version":[{"id":4152,"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/posts\/4142\/revisions\/4152"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/media\/4151"}],"wp:attachment":[{"href":"https:\/\/pwer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pwer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}