“Where does all the money go in healthcare?”
- Apr 13
- 1 min read
Dear Colleagues:
Enclosed is a great LinkedIn Post from Eric Bricker. He is a healthcare economist and offers insight into an analysis done by McKinsey & Company on profit in different healthcare sectors. This is not only interesting, but an example of the great posts Mr. Bricker makes on LinkedIn. I’d recommend you follow him for similar insights.
Best Regards,
Jon “JP” Warner MD
Founder, CSS
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Mr. Bricker's LinkedIn post: https://tinyurl.com/m2zc3cb7
Compound Annual Growth Rate (CAGR) 2019-2024:
Providers (Hospital Systems, Doctors, etc.) 1.8%
Health Insurance -1.2%
Healthcare Services and Technology 8.5%
Pharmacy Services (PBMs, Specialty Pharmacies, etc.) 7.5%
The overall national healthcare expenditures increased 6.1% per year during that same time frame to $5 Trillion.
The lion's share of increased profits have gone to healthcare services, technology and pharmacy services.
It is important to note that the large 'health insurance' conglomerates have wholly-owned subsidiaries that are healthcare services/technology companies (e.g. Change Healthcare, eviCore) and pharmacy services companies (e.g. Optum Rx, Emisar, Express Scripts, Accredo).
It is these 'non-insurance' companies within the health insurance conglomerates that drive all the profit growth for the healthcare industry.
Thank You for Subscribing to AHealthcareZ!  Eric Bricker, MD Chief Medical Officer AHealthcareZ LLC |
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