Latest advances in the medical field have encouraged interest for the healthcare industry. In addition the aging of baby boom cohort has also spurred dramatic changes in this business sector. The boomer demographics offer a unique challenge for the government, since it needs to run proper social programs. Also, entrepreneurs with the right mindset and resources are able to take advantage of this situation.
There is a strong correlation between the baby boomer generation and the healthcare industry, especially because they have reached an age group that allows for improved spending habits.
Healthcare industry is significantly influenced by demographic shift. Many boomers have established proper spending patterns and many of the have retired. The oldest boomer will soon be 70 years old, if we consider that they born since 1946. This is an important factor that has encouraged investors to look more closely at the healthcare industry.
It would be another 15 years before the youngest members of the boomer generation to reach the age 70. It means the healthcare services are likely to be in high demand. Investors could also expect to see longer period of time, before boomers start to decline significantly in number.
To recap thus far, we should see significant opportunities in Canada, Europe and United States in healthcare investments. Obviously, this opportunity isn’t limitless and demographic shifts also cause fluctuations in consumptions of healthcare products. Investors should look for appropriate demand drivers in the market and confirm whether they really have significant effects in the market.
There are many healthcare options and we should choose those that may serve boomers well. It means, we may put healthcare options for younger generation at lower priority. Companies that focus on healthcare researches and development should also be considered as worthy investment options, especially if they can provide better quality of life for older generation.
Here are areas of healthcare industry that we should focus on:
• Integrated healthcare centers that provide primary care services, such as diagnostics equipments, pharmacy and laboratory. They should be located in areas where boomer typically lives.
• Providers of services and products for coronary artery disease, COPD, congestive heart failure, diabetes management and other diseases.
• Innovators and providers of biotechnology and pharmaceutical products.
• Providers of assistive and mobility devices. They can provide products that improve people who have impaired fine or gross motor skills, due to joint immobility, arthritis, chronic pain and other illness.
• In-home healthcare services for occupational therapies, physical therapies and nursing.
• Outsourcing services for health industry.
• Long-term assisted living care.
• Surgical and medical retreats.
• Manufacturers of various medical equipments, such as ultrasound scanner, MRI, and disposable equipments.
• Medical equipment refurbishing services, which are useful for low-cost, smaller rural hospitals.
• Centers of alternative medical treatments, such as TCM, acupuncture and Ayurvedic methods.
• Information technology providers for healthcare industry that can help in collecting, storing and analyzing data.
Obviously, there are many investment alternatives in the healthcare industry and we could choose one that seems to be the most appropriate.