Healthcare is a Business
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This discussion provides an overview of the healthcare industry and some of the challenges facing the healthcare industry today. The healthcare industry employs nearly 20 million people in the United States and generates about 10% of the private sector GDP. Jobs in this industry are in high demand and pay better than most other industries. Rapid change is underway in the healthcare industry due to forces like the Affordable Care Act ("Obamacare") and an aging population. Many of these industry-wide changes are impacting how physicians work and who physicians work for.
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Healthcare is a Business
- 2. Understand the Size and scope of the healthcare industry Forces changing the healthcare industry Challenges facing the healthcare industry
- 3. http://www.bls.gov/web/empsit/cesbmart.htm All Other Industries 86% Healthcar e 14% 19.5 Million Healthcare Jobs March 2014 Data
- 4. http://www.bls.gov/ooh/healthcare/physicians-and-surgeons.htm#tab-5 $34,750 $90,930 $96,460 $187,200 $0 $50,000 $100,000 $150,000 $200,000 All occupations Physician Assistants Nurse Practioners Physicians Median Annual Wages, 2012
- 5. http://www.bls.gov/ooh/healthcare/physicians-and-surgeons.htm#tab-6 11% 18% 31% 38% 0% 5% 10% 15% 20% 25% 30% 35% 40% All occupations Physicians Nurse Practioners Physician Assistants Projected Growth 2012-2022
- 6. Healthcare 8% All Other Industries 92% Percentage of Private Sector GDP for 2013 The BEA defines the healthcare sector to include hospitals, clinics, skilled nursing facilities, and social assistance. The pharmaceutical industry and medical supply industry are not included in this breakdown of GDP
- 7. “The economic forces put in motion by the [Affordable Care] Act are likely to lead to vertical organization of providers and accelerate physician employment by hospitals and aggregation into larger physician groups.” Ann Intern Med. 2010;153(8):536-539.
- 10. Forces of Change VBP ACOs ACA Physician Shortages Aging Population Access Technology
- 11. VBP ACOs ACA Physician Shortages Aging Population Access Technology
- 12. VBP ACOs ACA Physician Shortages Aging Population Access Technology
- 13. 0% 5% 10% 15% 20% 1960 1970 1980 1990 2000 2010 2012 Percent of GDP spent on healthcare Data from CMS Office of the Actuary, NHSG
- 14. $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1960 1970 1980 1990 2000 2010 2012 Billions of dollars spent on healthcare Data from CMS Office of the Actuary, NHSG
- 15. $0 $2,000 $4,000 $6,000 $8,000 $10,000 USA Norway Switzerland Netherlands Luxembourg Denmark Canada Austria Germany France Belgium Sweden Ireland Australia UK Iceland Finland Spain Japan New… Italy Greece Portugal Per capita spending on healthcare Organization for Economic Co-operation and Development Data, 2012
- 16. Hospital Care 37% Physician Services 24% Rx Drugs 11% Long Term Care 7% Home Health Care 3% Other 18% 2012 Data from CMS Office of the Actuary, NHSG
- 18. 0% 25% 50% 75% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Hospital Physician Data from MGMA Physician Compensation Surveys, 2000-2012 Compiled in Clinical Transformation: New Business Models for a New Era in Healthcare,” Accenture, Oct. 31, 2012
- 19. 75% of physicians will be employed by hospitals by 2014 Merritt Hawkins 2012 Review of Physician Recruiting Incentives http://www.merritthawkins.com/uploadedFiles/MerrittHawkins/Pdf/mha2012survpreview.pdf
- 20. 0% 10% 20% 30% 40% 50% 60% 2000 2005 2009 2013 Truly Independent Physicians
- 21. Likely to be an employee of a healthcare system Need to show the value of the healthcare you provide