{"id":4159,"date":"2020-02-13T17:14:23","date_gmt":"2020-02-13T17:14:23","guid":{"rendered":"http:\/\/803.557.mywebsitetransfer.com\/?p=4159"},"modified":"2020-02-13T17:30:21","modified_gmt":"2020-02-13T17:30:21","slug":"the-united-states-of-healthcaresm-part-3","status":"publish","type":"post","link":"https:\/\/pwer.com\/?p=4159","title":{"rendered":"The United States of HealthcareSM (Part 3)"},"content":{"rendered":"\n

The\nUnited States of HealthcareSM <\/sup>(Part 3)<\/p>\n\n\n\n

Based\non the last two blogs of this series, we believe many people who are dismissing\nthe direction of our economy may have been looking at it through wrong-colored\nglasses.  The U.S. jobs report for January\n2020 was just issued, and once again, healthcare services are a key driver of\njobs growth. See the graph from CNBC below:  <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

We\ncan drill down on this combined \u201cEducation and Healthcare\u201d number of 72,000 a\nlittle deeper by going directly to the Bureau of Labor Statistics (BLS).  Following the same period, the two additional\ngraphs below separate the combined \u201cEducation and Healthcare\u201d in the Jobs\nReport and it shows that out of the 72,000 jobs, there were 36,000 healthcare\njobs, with 23,000 in Ambulatory Care and 10,000 were in hospitals.  Additionally, since January 2014, hospitals\nhave added 489,000 jobs.  My theory is that\nthere are many more healthcare-related jobs that go unaccounted for and not identified\nas healthcare in professional and even some technology companies.  For example, where are the thousands of people\nthat work outside of doctors and hospitals doing Healthcare-IT, EHR development\nand sales, medical billing, and healthcare supply chain management? <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The\nBLS table below provides a few interesting comparisons; for instance, the job\ngrowth in healthcare is expected to continue its growth through 2028, at the\nhighest rate of any category on the chart, reaching a forecast peak of 23\nmillion by 2028.  Again, I think this is\nhighly conservative and I believe the number should be much larger.  One of the obvious examples for this is with healthcare\ntechnology companies that are very likely labeled in the general technology\nfield, as well as healthcare lawyers and others that have a direct cost and\ncontribution to healthcare. <\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The\npoint we continue to make is that healthcare stability is likely to bring stability\nto the U.S. economy.  Even though\nhealthcare is a cost, it is also a driver of substantial consumer income, as\nwell as consumer spending, which we know to be about 70% in the U.S. economy.  In fact, two-thirds (2\/3) of consumer spending\nwas on \u201cservices such as housing and healthcare\u201d while one-fifth (1\/5) was on\nnon-durable goods such as food and clothing.  Consumer spending in the U.S. grew by 1.8% in\nthe fourth quarter of 2019[1]<\/a>.  Clearly, the spending on healthcare goods and\nservices were a significant part of the U.S. economy.<\/p>\n\n\n\n

We\nare waiting for people to realize that the U.S. economy is more stable than\nmost developed nations\u2019 economies; in part, healthcare in the U.S. is a\nbusiness and that business is now the largest employer in the country.[2]<\/a><\/p>\n\n\n\n

In\na recent article I read from The Atlantic<\/em><\/strong> noted that \u201cservices\nare the new steel\u201d and healthcare is the biggest sector.  The Atlantic<\/em><\/strong> also noted:<\/p>\n\n\n\n

\u201cBy 2025, one-quarter of the\nworkforce will be older than 55.  That\nshare will have doubled in just 30 years.  The graying of the nation will have widespread\neconomic and political implications, like declining productivity and electoral\nshowdowns between a young, diverse workforce and an older, whiter retirement\nbloc.  But the most obvious effect of an\naging country is that it needs more care\u2014and that means more workers.\u201d<\/p>\n\n\n\n

The Atlantic<\/em><\/strong> also noted something fundamental and why healthcare\nis so resilient to the economy [emphasis added]; <\/p>\n\n\n\n

\u201c…the two most\ndestabilizing forces for labor in the last generation have been globalization\nand automation.<\/strong>  Together, they\nhave hurt manufacturing and retail by offshoring factories, replacing human\narms with robotic limbs, and dooming dusty department stores.  But health care is substantially\nresistant to both<\/strong>.  While\nglobalization has revolutionized supply chains and created a global market for\nmanufacturing labor, most health care is local.  A Connecticut dentist isn\u2019t selling her\nservices to Portugal, and a physician\u2019s receptionist in Lisbon isn\u2019t directing\nher patient to Stamford.  Health-care\nwork has, so far, been generally resistant to automation, too.  While artificial intelligence may one day take\nover radiology, while programmable robots replace brain surgeons, that future\nisn\u2019t quite here yet.\u201d<\/p>\n\n\n\n

That\nlast part of the quote is an additional reason to be optimistic.  First, we are guaranteed to have a shortage of\nphysicians in the coming decade \u2013 this is not fearmongering.  Having been privileged to have played a part in\nthe start of two medical schools, I strongly believe that we are headed for an\nimminent shortage in doctors.  Typically,\nit takes a minimum of roughly 12 years (post high school) to mint a new doctor,\nnot including high-end specialties. <\/p>\n\n\n\n

We\nare convinced that only with technology-fused healthcare, such as Internet of Things\n(IoT), telemedicine, robotics and Artificial Intelligence (AI), can we provide\ncare to the growing number of Baby Boomers\nexiting the workforce.  The numbers\nstrongly suggest that in the next 20 years, healthcare will be the main\nbusiness in the developing world and in the U.S.; healthcare could easily rise\nto consume 25% of Gross Domestic Product (GDP) and even higher as we extend\nlife expectancy, and optimistically, quality of life.
<\/p>\n\n\n\n

\n\n\n\n

[1]<\/a> https:\/\/www.thebalance.com\/consumer-spending-trends-and-current-statistics-3305916<\/a><\/p>\n\n\n\n

[2]<\/a> https:\/\/www.theatlantic.com\/business\/archive\/2018\/01\/health-care-america-jobs\/550079\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The United States of HealthcareSM (Part 3) Based on the last two blogs of this series, we believe many people who are dismissing the direction of our economy may have been looking at it through wrong-colored glasses.  The U.S. jobs report for January 2020 was just issued, and once again, healthcare services are a key driver of jobs growth. See the graph from CNBC below:   We can drill down on this combined \u201cEducation and Healthcare\u201d number of 72,000 a little deeper by going directly to the Bureau of Labor […]<\/p>\n","protected":false},"author":6,"featured_media":4167,"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-4159","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\/02\/AdobeStock_77536731-1-scaled.jpeg","_links":{"self":[{"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/posts\/4159","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=4159"}],"version-history":[{"count":2,"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/posts\/4159\/revisions"}],"predecessor-version":[{"id":4170,"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/posts\/4159\/revisions\/4170"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwer.com\/index.php?rest_route=\/wp\/v2\/media\/4167"}],"wp:attachment":[{"href":"https:\/\/pwer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pwer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}