U.S. Health Care Spending to Double by 2017, Report Predicts
Spending could hit $4.3 trillion, account for one-fifth of gross domestic product
According to the report of HealthDay news, American`s spending on health care could double by 2017, reach $4.3 trillion and accounting for 19.5% of the nation`s gross domestic product. The main reason causes this big growth is baby boomers begin to enter the medicare system, there will be major shift in health care spending from the private to the public sector.
Health spending is expected to increasing steady within near 10 years, which is 2007 through 2017, at 6.7% per year. At the same time economic growth is expected to slow to an average annual rate of 4.7%. As a result, the combination of steady health spending growth and slowing economic growth will lead to the health care part of gross domestic product rising to nearly 20% 2017, nearly one-fifth of the economy. Due to medicare baby boomers, public spending growth is increasing whereas private spending growth is decreasind.
My opinion
Every year thousands of people require treatment for dreaded deseases like cancer, heart desease, kidney, liver desease etc. People spend a lot of money for their health. This article prove that large amount of money is flowing to medical business.
However, as I read from chapter16, drugstore retailers face big challenge due to low price negotiation with health insurance companies. Therefore they are attempting to make up lost profits by selling nonpharmaceutical products. In mongolian case there are various asian drugstore chains like Tianshi, Dabao, Beichishin, even american Nutrition B12 etc. Nowadays people are seeking low price and high quality medical treatment in Asian countries. It provide for marketers nice opportunity to make medical tourism for medical tourists specially for westerners. According to my research after professor Lee showed video on class, asian world standard treatment costs only 10-20% which is in USA or UK. The most popular destinations are India, Malaysia, Hong Kong, Singapore and Thailand. Medical tourism is rapidly growing with large numbers of tourists in these countries by 20-30% each year. Currently, number of estimated tourists to be 1.3 millions and asia expected to be earn it U.S.$ 4.4 billion by 2012.
References:
Every year thousands of people require treatment for dreaded deseases like cancer, heart desease, kidney, liver desease etc. People spend a lot of money for their health. This article prove that large amount of money is flowing to medical business.
However, as I read from chapter16, drugstore retailers face big challenge due to low price negotiation with health insurance companies. Therefore they are attempting to make up lost profits by selling nonpharmaceutical products. In mongolian case there are various asian drugstore chains like Tianshi, Dabao, Beichishin, even american Nutrition B12 etc. Nowadays people are seeking low price and high quality medical treatment in Asian countries. It provide for marketers nice opportunity to make medical tourism for medical tourists specially for westerners. According to my research after professor Lee showed video on class, asian world standard treatment costs only 10-20% which is in USA or UK. The most popular destinations are India, Malaysia, Hong Kong, Singapore and Thailand. Medical tourism is rapidly growing with large numbers of tourists in these countries by 20-30% each year. Currently, number of estimated tourists to be 1.3 millions and asia expected to be earn it U.S.$ 4.4 billion by 2012.
References:
No comments:
Post a Comment