A NY Times article today reported the dramatic rise in health care costs for employers. It is no surprise that this has had such an effect on employment in corporations. Plus, given what we have seen when looking at the revenue of health care related companies, this segment of the market has been reaping handsome growth rates.
From 2006, this segment grew 23% compared to the overall Global 5000 of 12%. The Health Care segment grew from 4.4% of the total market to nearly 5% of the revenue for all of the Global 5000.
There are 192 Global 5000 companies in the Health Care industry. This group is made up of 6 sub-segments, namely:
- Drugs
- Health Care Facilities
- Health Care Plans
- Health Care Services
- Medical Products & Equipment
- Biotech and Pharmaceuticals
Compared to other industry sectors, the Health Care market is very healthy and has exhibited stronger growth than most other industries. Overall, the Health Care market (based on revenues of these large companies) grew by:
- 10% in 2007
- 8.9% in 2008
- 5% in 2009
- 8.6% in 2010
Looking underneath this top line growth at the year over year changes at each portion of the healthcare market we see specific differences. Here are the annual changes in 2009 and 2010
- 4.9% and 4.4% Drugs
- 5.8% and 5.4% Health Care Facilities
- 7.2% and neg 3.9% Health Care Plans
- 6.9% and 8% Health Care Services
- 2.5% and 4.9% Medical Products & Equipment
- 4.3% and 12.1% Biotech and Pharmaceuticals
The top companies in each of these categories include the following:
Drugs
- McKesson
- Cardinal Health
- AmerisourceBergen
- Boehringer Ingelheim
- Owens & Minor
Health Care Facilities
- US Oncology
- Vanguard Health Systems
- Lifepoint Hospital, Inc
- Life Care Centers of America
- Genesis HealthCare
Health Care Plans
- Highmark
- Blue Cross-Blue Shield of Michigan
- WellCare Health Plans
- Centene
- HealthSpring, Inc.
Health Care Services
- UnitedHealth Group
- Wellpoint
- Medco Health Solutions
- Kaiser Permanente
- Humana, Inc.
Medical Products & Equipment
- Franz Haniel
- MediPal Holdings
- Alfresa Holding
- Suzuken
- Medtronic
Pharma & Biotech
- Johnson & Johnson
- Pfizer
- Roche Group
- Novartis
- GlaxoSmithKline