Companies in this industry, which include physicians, dentists, outpatient care centers, and imaging and diagnostic facilities, provide health care services to ambulatory patients. Major companies include Apria Healthcare, DaVita, and LabCorp (all based in the US), as well as Bayshore HealthCare (Canada), Fresenius (Germany), and Sonic Healthcare (Australia).
Pressure on the health care industry to drive down costs is pushing more care into lower-cost ambulatory settings and away from hospitals and nursing homes. Payments are increasingly based on whether providers meet quality standards. Demand for health care services is driven by demographics and advances in medical care and technology. The profitability of individual companies depends on efficiency, reputation, and expertise.
Products, Operations & Technology
Major services include care provided by physicians, which accounts for about 50% of industry revenue; dentists and outpatient care centers account for about 12% each. Other sources of revenue include medical and diagnostic laboratories, blood banks, home health care, rehabilitation therapy, ambulance services, and offices of other health practitioners such as chiropractors, optometrists, and mental health practitioners. Health care in the US is led by for-profit entities, an exception to the global norm of nationalized medicine.