Thinking about choosing healthcare as a business venture?
National Health Expenditure (NHE) grew 9.7% to $4.1 trillion in 2020 and accounted for 19.7% of the Gross Domestic Product (GDP). By 2028, national health spending is projected to reach $6.2 trillion. With that level of growth, there has never been a better time to join the healthcare market.
THE NEW FACE OF HEALTHCARE
As the global COVID-19 vaccine rollout continues, investors’ attention on the healthcare market has not faltered. Consumers are reconsidering their approach to personalized healthcare, and providers and investors are noticing shifting mentalities.
But why is now the time to invest in healthcare as a business owner? And is it the right fit for you?
LOOKING TOWARD THE ESSENTIAL
The healthcare market is more essential than ever, and investing in that sector is an investment into our communities and shared futures. The COVID-19 pandemic spurred new technologies and different care methods than we’ve seen in previous generations, making this an especially promising time for new business opportunities.
Between surges in telemedicine and home healthcare services during the initial stages of the lockdown, investors have begun homing in on and innovating practices beyond the pandemic era. This new age has prompted smart entrepreneurs to invest in healthcare business models that are less traditional.
In turn, these investors will make healthcare as a business more profitable for providers and benefit potential recipients in the long run.
HEALTHCARE INVESTMENT OPPORTUNITIES
With healthcare costs and expenditures expected to rise within the next decade and health and safety at the forefront of our collective conscience, motivated investors should be particularly interested in a medical franchise prioritizing innovation and personalized patient care.
Focusing on driving innovation and improving industry fundamentals will provide attractive opportunities for strategic investors looking to diversify their portfolios in the healthcare sector. The pandemic has illustrated that the healthcare industry can advance quickly and adapt to societal demands.
PHARMA & BIOTECH
While biotechnology isn’t a new concept, many advancements made in recent years have made this sector of the medical world a particularly lucrative and appealing venture for investors. Biotech stocks have the potential for significant investment returns, but only if the products are deemed safe and effective.
Under the watchful gaze of the Food and Drug Administration, some emerging medicines never make it to market. Therefore, one must balance the risk with the reward if investing in this side of the medical industry.
MEDICAL EQUIPMENT & SALES
Medical technology and equipment manufacturers offer a range of products while staying current on trends and the latest innovations. Much like pharma and biotech companies, medical equipment businesses occasionally need to await clinical trial results before releasing their products to the public.
While this can be a risky and volatile healthcare industry sector, innovation and attention to consumer demand can pay off big time and help revolutionize medicine and patient care.
Companies within the sales and distribution networks across the healthcare industry are also subject to healthcare regulations and consumer demand for medical products. Wise investors will keep this in mind, and the market begins to see a steeper uptick in the production of drugs and other healthcare goods.
And with a forecasted healthcare distribution market value of nearly $1.4 billion by 2025, the increasing need to invest in more robust distribution networks becomes more apparent.
The term “managed healthcare” primarily refers to companies within the healthcare industry that provide individuals with health insurance policies. This includes private and employer-sponsored insurance, healthcare reform bills like the Affordable Care Act, and social initiatives like Medicare and Medicaid.
Since everyone needs health insurance and there are few disruptors and competitors in this sector, returns tend to be steady for investors seeking to diversify their portfolios by investing in health insurance companies.
Some healthcare facilities combine the potential of both real estate and healthcare as a business to draw potential for high returns and attract investors. They help diversify your portfolio beyond doctor’s offices and hospitals if you’re already invested in the healthcare sector. And if you are new to the market, they are considered a low-risk investment with a high potential for returns.
Since nearly 25% of the U.S. population is slated to be over the age of 65 by the year 2050, healthcare facilities will likely be increasingly in demand as the years pass.
Even before the emergence of the pandemic, urgent care facilities have served as a safe haven for Americans in need across the country. The market has continued to expand over the past several years as consumers have shifted their focus to preventative care without visiting an emergency room. The digitization of healthcare has also helped make urgent care facilities more streamlined and convenient than ever.
Providers like American Family Care (AFC) address the healthcare needs of each and every American seeking compassionate, personalized healthcare services, no matter their situation. As people increasingly visit urgent care centers instead of seeking out primary care doctors and expensive emergency room services, AFC provides a one-stop solution for a range of medical needs, including X-rays, lab work, and prescription care, all under the same roof.
Since 45% of adults have spurned the idea of maintaining a primary care doctor relationship, care facilities like AFC present the perfect opportunity for healthcare instead of old-school doctor’s office visits or emergent events.
WHAT’S AHEAD FOR HEALTHCARE
The American population will never be lacking for reasons to seek healthcare. People are aging, and obesity rates are climbing, other health issues are coming to the forefront, and trusted and qualified healthcare providers will always be essential. As healthcare innovation keeps pace with the information and technology sector, the possibilities for groundbreaking improvements are just on the horizon.
Healthcare as a business will always be a promising and worthwhile endeavor, but determining which sector and franchise to invest in depends on your needs and goals. You should choose a trusted leader in the healthcare market that knows what it takes to provide premium service for clients while offering franchisees the opportunities to grow their business.
Since 1982, AFC has been at the forefront of the urgent healthcare industry, staying ahead of industry trends and advancements while empowering franchisees to provide world-class care. Our proven franchise model is designed to work for both new and experienced franchisees, and our team of experts is here to help you navigate every step of the process as you get your clinic up and running.
AFC is proud to be a preeminent source for urgent care in the United States and looks forward to partnering with like-minded franchisees to bring better healthcare to people across the country.
To learn more about multi-unit franchise opportunities with AFC, apply now!