Healthcare Industry

Healthcare Industry

Description of the Healthcare Industry

Healthcare originated as a wholly reactionary, medicinal practice where people sought to learn how to heal ailments and disease through the knowledge of medicinal properties of plants. The research method of trial and error that was common in the olden days aided our ancestors to gain comprehensive knowledge of medicine, treatment and therapy so that they were able to cure ailments and diseases(Andersen et al., 2007).As a result, the knowledge gained over the passage of time was used for the betterment of humanity.

Many years later, after significant knowledge had been amassed, healthcare became a subject of purposeful study across the world, gaining a strong foothold in Persia, Egypt, Rome, India and China. The 19th century brought about significant technological, biological and chemical advances so that physicians were able to gain a better understanding of the diagnosis and treatment methods.

Then, with the dawn of the 20th century, healthcare practices were revolutionized with the discovery of syringes, anesthetics, antiseptics, penicillin and x-rays technology (Jonas et al., 2007). These inventions helped to bring about a revolution in the healthcare industry as doctors were able to offer prepaid arrangements for their services, eventually evolving into the medical insurance and administration field which is commonly present in healthcare facilities today (Andersen et al., 2007).

The healthcare industry consists of myriad establishments that are staunchly devoted to the diagnosis, prevention, treatment and therapy of medical conditions. The treatment offered by the healthcare industry may be in the form of products such as medication and physical aids or services. Moreover, the provision of products and services may be privately or publicly(Jonas et al., 2007).

Among all the industries across the world that are listed on globalEDGE, the Healthcare industry surpassesall others because of its sheer size.The healthcare industry solely comprises of businesses that provide services to prevent, diagnose and treat ailment and health issues and manufacture medical products. There are various types of health care facilities. For instance, in the United States, nearly seventy-six percent of healthcare establishments are the offices of practitioners like dentist, doctors and even optometrists.

Of these establishments, hospitals constitute roughly two percent but contribute nearly fifty-nine percent of revenues generated.Other establishments include Preferred Provider Organizations (PPOs) and Health Maintenance Organizations (HMOs) which are essentially a mix of hospital and insurance businesses. There are also a healthy number of nursing and residential care facilities, nursing homes, specialty treatment centers, physical therapy clinics, providers of home-based care, and medical laboratories (Niles, 2011).

The healthcare industry of the United States is inarguably the largest in the world. The industry is estimated to have a worth of more than $1.7 trillion, which easily exceeds that of any other industry around the world. In fact, compared to this massive figure, the total net worth of the healthcare system of whole of Europe adds up to $700 billion.The healthcare industry is highly fragmented as the system of healthcare varies remarkably from one country to another. In the United States, insurance coverage is the responsibility of the individual; ...