Category Archives: Health Care

Veterans Enrolled in the VA

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Today’s post is about veterans since it is the holiday we have designated for remembering our veterans of foreign wars. The Department of Veterans Affairs has since 1999 done an annual survey to help track the number of veterans who are enrolled to receive health benefits through the Veterans Administration (VA). It may surprise some people to discover that a veteran of the U.S. military would even need to enroll in anything to receive VA benefits but things are more complicated as it turns out.

Here is an explanation from the VA on the need to enroll annually for some veterans. “Enrollments are renewed annually and many veterans will stay enrolled each year without any action on their part. Most veterans who are not receiving monthly compensation or pension checks from VA, however, must complete an annual financial statement known as a Means Test. Completing a Means Test allows the VA to place you in the correct Priority Group for determination of copayments. It also ensures that your local VA receives reimbursement from VA for the health care provided to you.”
Link to quoted source.

The market size listed below is the number of U.S. veterans enrolled to receive VA benefits in 2002 and in 2010.

Geographic reference: United States
Year: 2002 and 2010
Market size: 6.2 million (approximately 25% of the veteran population in 2002) and 7.8 million (approximately 35% of the veteran population in 2010)
Source: “Table 7.1—Perceived Health Status by Year,” 2010 Survey of Veteran
Enrollees’ Health and Reliance Upon VA, July 2011, page 74, available in a PDF format here.
Original source: U.S. Department of Veterans Affairs
Posted on 11/11/11

Cancer Diagnoses

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Today’s market size is one based on a medical diagnosis and thus is really the size of the “customer” base for cancer treatment. Specifically, it is the number of people who were diagnosed with cancer of any type, anywhere in the world, in 2008.

Geographic reference: World
Year: 2008
Market size: 13 million
Source: “Death Rates are Down in the U.S. But Globally the Disease is Rising,” National Geographic, October 2011, page 28.
Original source: Globocan, International Agency for Research on Cancer
Posted on October 14, 2011

Hospitals

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Most of us are well aware of the rising costs of health care. It will not come as a surprise to see that revenues for hospitals in the United States have seen steady increases year-over-year, despite recessions, slowdowns, housing bubbles, financial melt-downs, or any other events that disrupt the economy. This is not to suggest that individual hospitals may not have struggled during our most recent recession, however, as a whole, the hospital industry has seen nothing but rising revenues for well over a decade.

Today’s market size is the revenue earned by hospitals in the United States in 2005 and 2010. Revenues increased over this period by 30.4%, more than twice the rate of inflation during over the same period which was 12.8%. To your health!

Geographic reference: United States
Year: 2005 and 2010
Market size: $620.85 billion and $809.47 billion respectively
Source:  “Table 1 – Selected Services, Estimated Quarterly Revenue for Employer Firms,” Annual Benchmark Report for Services through 2010, page 9, a series of reports put out by the Census Bureau in conjunction with their Service Annual Survey, published every non-Economic Census year. The table from which today’s market size is taken is available online here.
Original source: U.S. Department of Commerce, Economics and Statistics Administration, U.S. Census Bureau
Posted on September 20, 2011

MHealth

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The term “mHealth” is one being used to help define a category of medical services and devices and a growing part of the healthcare industry. It stands most simply for mobile health care, more fully “emerging mobile communications and network technology for healthcare.”

This market encompasses the use of mobile technology in the service of providing health care. It includes all those applications which combine body sensors with mobile or static devices designed to monitor a patient’s vital signs or some specific bodily function. The infrastructure behind these devices is also part of the category. An example of such a device is an electrode patch which may be worn by a patient and automatically sends the monitoring center information about the patient while he or she is on-the-go. The information is sent by a tiny radio transmitter built into the epidermal electronic device.

Today’s market size is the estimated size of the market for mHealth products in 2010 and a forecast for the size in 2014. Please note, however, that this market has yet to be well defined and as a result various research firms have come up with widely disparate projections of its size. The source listed below provides a link to an article explaining this problem more fully, titled “mHealth predictions: $1.9B, $4.4B, $4.6B?” Defining the market is key!

Geographic reference: United States
Year: 2010 and a forecast for 2014
Market size: $1.5 and $4.6 billion respectively
Source: “Market Size Projections for mHealth and Wireless Health,” Wireless Health Strategies, March 19, 2010, available online here.
Original source: CSMG, a division of TMBG Global
Posted on September 06, 2011

Veterinary Services

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A sleepy looking Katie the Beagle

The downturn in the U.S. economy has not spared many but there is always some variation in how such a sharp economic slowdown hits some industries versus others. Veterinarians are among those who often see their base business less impacted than others. While dealing with declining revenues in 2009, veterinary service providers saw a decline of only 0.6% between 2008 and 2009. Of the 27 5-digit NAICS (North American Industrial Classification System) industries in the professional services sector, the veterinary services industry was one of four that saw revenues decline by 0.6% or less between 2008 and 2009. Many other professional service providers saw revenues decline by 15% or more.

Today’s market share is based on the estimated revenues earned by veterinary service providers in the United States in 2009.

Geographic reference: United States
Year: 2009
Market size: $25.64 billion
Source: “Table 6.1. Professional, Scientific, and Technical Services (NAICS 54) – Estimated Revenue for Taxable Firms: 2001 Through 2009,” page 1 and 2 of an extract from Service Annual Survey: 2009, available online here.
Original source: U.S. Bureau of the Census
Posted on August 30, 2011

High-Deductible Health Insurance Plans

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High-deductible health insurance plans have lower premiums than traditional coverage but the insured pays quite a bit more out-of-pocket before any coverage starts. If the deductibles in such plans are at least $1,200 for individuals and $2,400 for families, the plans can be paired with Health Savings Accounts (HSAs). HSAs allow employees to deposit pre-tax income to pay for medical expenses. In many cases, employers also contribute to their employees’ HSAs.

Today’s market size shows enrollment for high-deductible health insurance plans with health savings accounts as of January of that year. In 2011, this represented 7% of all health insurance enrollment for people younger than 65.

Geographic reference: United States
Year: 2008 and 2011
Market size: 6.1 million and 11.4 million respectively
Source: Tom Murphy, “More Are Enrolling in High-Deductible Plans,” Lansing State Journal, June 19, 2011, page 3E
Original source: America’s Health Insurance Plans

Cosmetic Surgery

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In China, even a small percentage of the population can be a very large number. This may explain how, according to the source, China is now the third largest national consumer of cosmetic surgery when calculated by the number of procedures performed annually. Today’s market size is the estimated value of cosmetic surgical procedures performed in China last year.

Geographic reference: China
Year: 2010
Market size: $2.3 billion
Source: LaFraniere, Sharon, “For Many Chinese, New Wealth and a Fresh Face,” The New York Times, April 24, 2011, page 6
Original source: Chinese Government estimates

Sleep Clinics and Centers

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Sleep for many is an illusive thing, making life very difficult and for some few the inability to sleep can be so complete that it leads to death. This fatal and extremely rare sleeping disease is called Fatal Familial Insomnia (IFF). Thankfully, for most people suffering from sleep disorders, there are a variety of remedies that may be tried to isolate the cause of the problem and then treat it. This is done, for the most troubled sleepers, in sleep clinics and centers. The market size listed below is an industry estimate of what those clinics and sleep centers will earn in 2011. Another interesting item related to sleep, in 2008, 56 million prescriptions for sleeping pills were written in the United States, representing a sharp increase over the preceding years.

Wishing you sweet dreams.

Geographic reference: United States
Year: 2011
Market size: $4.5 billion
Source: Max D. T., “The Secrets of Sleep,” National Geographic, May 2010, page 81.

Diagnostic Testing Laboratories

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The market for all things medical appears to be on a steady rise in the United States and the services of diagnostic testing laboratories no exception. According to the source article, one of the hot trends in this industry is genetic-testing which is done by scanning the DNA of a “consumer” in order to check for any signs of irregularity that may be a pointer to potential and specific diseases or health conditions to which the consumer may be at higher risk than the general public. The government has begun to look at this industry more closely, as these tests can offer results that are contradictory or misleading.

Based on our earlier market size posts on the diagnostic laboratory industry, we assume that this market size includes both medical testing laboratories as well as diagnostic imaging services, which are listed in detail here.

Geographic reference: United States
Year: 2009
Market size: $60 billion
Source: Wall Street Journal, July 23, 2010, page B1.
Original source: Washington G-2 Reports

Dialysis Market

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This market size represents the number of tax dollars spent to care for those on dialysis every year in the United States. In October 1972, Congress made revisions to the Social Security Act so that anyone diagnosed with kidney failure, regardless of age or income, would have comprehensive coverage under Medicare.

Initially, before guaranteed payments from Medicare, hospitals provided most of the care on a nonprofit basis, albeit on a limited basis. In 2010, 80 percent of the clinics offering dialysis were for-profit, with two-thirds of those operated by two chains: DaVita Incorporated (based in Colorado) and Fresenius Medical Care North America (a subsidiary of a German company that makes dialysis machines and supplies). Together these two companies make $2 billion in operating profits per year. More than 100,000 people start dialysis each year in the United States. In 2010, there were nearly 400,000 patients receiving dialysis.

Geographic reference: United States
Year: 2010
Market size: $20 billion
Source: Robin Fields, “God Help You. You’re On Dialysis,” The Atlantic, December 2010, pages 82-92.

Midwives in the United States

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In honor of a friend of ours, on her birthday, we thought we’d post a market size about the number of births in the United States that are attended to by midwives. Many people believe that midwives deliver primarily babies born outside of hospitals but this is not true. The vast majority of the births attended to by midwives (96.7%) are hospital births. Overall, in 2006—the most recent year for which data are available—of the total number of births registered in the United States, 8.7% were attended to by a midwife. In Europe, by way of comparison, that percentage tends to be in the 75% range. Our friend, she is a midwife practicing at a hospital in France.

Geographic reference: United States
Year: 2006
Market size: Births attended by a midwife in the United States, 336,347 or 8.7% of all registered births
Source: “Trends and Characteristics of Home and Other Out-of-Hospital Births in the United States, 1990-2006,” National Vital Statistics Report, Volume 58, Number 1, March 3, 2010, available online here.
Original source: U.S. Department of Health and Human Services, Centers for Disease Control and Prevention, National Center for Health Statistics

Chiropractic Services

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The market size presented here is based on revenue from all offices offering primarily chiropractic services in the United States. The Bureau of the Census definition for this industry reads as follows: “This industry comprises establishments of health practitioners having the degree of D.C. (Doctor of Chiropractic) primarily engaged in the independent practice of chiropractic. These practitioners provide diagnostic and therapeutic treatment of neuromusculoskeletal and related disorders through the manipulation and adjustment of the spinal column and extremities, and operate private or group practices in their own offices (e.g., centers, clinics) or in the facilities of others, such as hospitals or HMO medical centers.”

Geographic reference: United States
Year: 1997 and 2007
Market size: $6.57 billion and $10.15 billion in annual receipts respectively
Source: “2007 Economic Census: Sector 62: Health Care and Social Assistance Programs: Preliminary Comparative Statistics for the United States 2007 and 2002”, March 26, 2010, available online here. Data for 1997 are from a report by the same title in the “1997 Economic Census” series.
Original source: U.S. Bureau of the Census

Medical Laboratories

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As is true with all the sectors of the health care industry, medical laboratories have seen significant growth over the last decade plus with revenues more than doubling between 1997 and 2007.

The Bureau of the Census definition for “medical laboratories” reads as follows: “This U.S. industry comprises establishments known as medical laboratories primarily engaged in providing analytic or diagnostic services, including body fluid analysis, generally to the medical profession or to the patient on referral from a health practitioner.”

Geographic reference: United States
Year: 1997 and 2007
Market size: $10.4 billion and $24.3 billion in annual receipts respectively
Source: “2007 Economic Census: Sector 62: Health Care and Social Assistance Programs: Preliminary Comparative Statistics for the United States 2007 and 2002,” March 26, 2010, available online here. Data for 1997 are from a report by the same title in the “1997 Economic Census” series.
Original source: U.S. Bureau of the Census

Diagnostic Imaging Services

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The increased use of electronic machinery for medical diagnosing has given us more accurate diagnostic tools, tools which can often be used instead of more invasive surgical intervention. Diagnostic imaging centers are at the center of the medical services industry. Revenues earned by diagnostic imaging centers grew by 200% between 1997 and 2007, an annual growth rate of 18.1%. By way of comparison, the inflation rate over this period averaged 2.6% annually.

The activities which fall under the umbrella term “diagnostic imaging” include four major types of scans: 1. Radiological (x-rays); 2. Computer Tomography (CT); 3. Magnetic Resonance Imaging (MRI), and 4. Ultrasound. Worth noting is the fact that the term also refers to the activities undertaken by physicians, now and throughout history, when they used their tactile sense, feeling an area of the body in order to visualize the condition of internal organs. The services offered at diagnostic imaging centers do not include this most basic form of diagnostic imaging.

Geographic reference: United States
Year: 1997 and 2007
Market size: $5.87 billion and $17.58 billion in annual receipts respectively
Source: “2007 Economic Census: Sector 62: Health Care and Social Assistance Programs: Preliminary Comparative Statistics for the United States 2007 and 2002,” March 26, 2010, available online here. Data for 1997 are from a report by the same title in the “1997 Economic Census” series.
Original source: U.S. Bureau of the Census

Home Health Care Market

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Yesterday’s post looked at the growth of receipts at hospitals in the United States between 1997 and 2007. Their receipts grew at a healthy clip of 10% a year over this period. The market for home health care services saw even greater growth over this period. Revenues generated by home health care service providers grew at an average rate of 33% per year between 1997 and 2007. There were 3,375 establishments primarily engaged in providing home health care services in the United States in 1997 and in 2007 there were 22,975 such establishments.

The Bureau of the Census definition for the “home health care services” industry reads as follows: “This industry group comprises establishments primarily engaged in providing skilled nursing services in the home, along with a range of the following: personal care services; homemaker and companion services; physical therapy; medical social services; medications; medical equipment and supplies; counseling; 24-hour home care; occupation and vocational therapy; dietary and nutritional services; speech therapy; audiology; and high-tech care, such as intravenous therapy.”

Geographic reference: United States
Year: 1997 and 2007
Market size: $10.1 billion and $46.2 billion in annual receipts respectively
Source: “2007 Economic Census: Sector 62: Health Care and Social Assistance Programs: Preliminary Comparative Statistics for the United States 2007 and 2002,” March 26, 2010, available online here. Data for 1997 are from a report by the same title in the “1997 Economic Census” series.
Original source: U.S. Bureau of the Census

Hospitals

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People who follow these mattters at all know that expenditures on health care in the United States have been rising steadily and at a pace far higher than inflation for many years now. So, it comes as no surpise to see the size of the market for hospital services more than double in the period 1997 to 2007. Hospital revenues grew by 108.6% between 1997 and 2007 which is 80% above the rate of inflation over this period.

The Bureau of the Census definition of the industry covered by this market size, a subset of the overall health care industry, reads as follows: “Industries in the Hospitals subsector provide medical, diagnostic, and treatment services that include physician, nursing, and other health services to inpatients and the specialized accommodation services required by inpatients. Hospitals may also provide outpatient services as a secondary activity. Establishments in the Hospitals subsector provide inpatient health services, many of which can only be provided using the specialized facilities and equipment that form a significant and integral part of the production process.”

Geographic reference: United States
Year: 1997 and 2007
Market size: $339 billion and $707 billion in annual receipts respectively
Source: “2007 Economic Census: Sector 62: Health Care and Social Assistance Programs: Preliminary Comparative Statistics for the United States 2007 and 2002,” March 26, 2010, available online here. Data for 1997 are from a report by the same title in the “1997 Economic Census” series.
Original source: U.S. Bureau of the Census

Dentistry

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After a holiday celebrated by the indulgence in candy, it seems only right to take a look at the market for dental services. Over the period 2002 to 2007 the number of establishments in the United States offering dental services grew by 7.5%, from 118,305 to 127,033. Employment in those offices grew at a faster rate, from 743,628 to 825,869, or 11%. So we had more offices that were on average slightly larger in 2007 than in 2002. The largest area of growth for these establishments was in their revenue, which grew 32.5% over this same period.

Geographic reference: United States
Year: 2002 and 2007
Market size: $71.1 billion and $94.2 billion respectively
Source: “2007 Economic Census: Sector 62: Health Care and Social Assistance Programs: Preliminary Comparative Statistics for the United States 2007 and 2002,” March 26, 2010, available online here.
Original source: U.S. Bureau of the Census

Compounding Pharmacies in the United States

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Data show the number of compounding pharmacies in the United States in 2010. Compounding pharmacists mix raw ingredients to prepare customized medications to meet the specific needs of patients. Between 1 and 5 percent of the population needs medications that are not commercially available. For example, compounding pharmacies can prepare gluten-free and lactose-free medications, specialized hormone therapy, or specialized doses of pain medication. Of the 400 compounding pharmacies in the United States, only 76 are nationally accredited by the Pharmacy Compounding Accreditation Board.

Geographic reference: United States
Year: 2010
Market size: 400
Source: Rebecca Jones, “Custom Cures,” Wayne State, Spring 2010, page 14. The publication is accessible online here.

Specialty Pharmacies, 2011

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Data show predicted revenue for the year 2011. Specialty Pharmacies are a new type of pharmacy category. These firms offer more interactive services and emphasize their status as a health care provider more than a retail outlet. Here is a quote from a press release by Walgreens regarding their new line of Specialty Pharmacies:

“Walgreens Specialty Pharmacy provides personalized care and services through dedicated fulfillment centers across the country and electronically linked Walgreens pharmacies, including locations in academic medical centers, community hospitals and physician office buildings. Walgreens Specialty Pharmacy assists patients in obtaining medications, coordinates insurance benefits and provides individualized therapy management and clinical support. For more information, visit www.walgreenshealth.com/specialty.”

Geographic reference: United States
Year: 2011
Market size: $100 billion
Source: Rebecca Jones, “Custom Cures,” Wayne State, Spring 2010, page 13. The publication is accessible online here.
Original source: Walgreens