An Analysis of Business Performance In The Health Care Industries

Total costs incurred by both the services and the products segments of the aggregate health care industry are high and increasing at what are widely interpreted as distressing rates. To date, however, relatively little attention has been given to the investor-owned hospital industry, or especially, to other profit seeking segments of the health care industry. That sector of the health care industry is composed of small professional service firms which account for slightly less than one-third of national health care expenditures, and the firms providing pharmaceutical products and medical equipment, supplies and devices which together account for roughly one-third of national health expenditures. This article was designed to fill that gap and to provide empirical data on the market performance, profitability and management effectiveness of certain of these firms.