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I see everyday in the news where the health care costs are sky-rocketing even as people are loosing jobs and stocks all around the globe are sinking. I believe that people will not be able to pay for these health care services for long and the health care industry is going to crash like the financial industry is doing right now.
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June 20th, 2009 at 5:31 pm
Depends on the sector.
An Increasing number of Nursing Homes are going on the sales block and the ones not on the block have a growing number of patient vacancies. As the economy worsens, people are bringing relatives home for care.
Medical Insurance is also loosing clients as more people are laid off and loose their job provided insurance. Insurance companies have raised premiums in an attempt to make up the difference and in doing so priced themselves out of reach for private individuals.
Drugs are the only bright spot at this time. Everyone appears to be buying their meds. as they need them.
June 20th, 2009 at 5:41 pm
People can’t go without their meds or medical treatment. Maybe some can but most can’t because if they could they surely would. Its not like gasoline where people finally realized that they can conserve and bring the price down.
The health INSURANCE industry may see a fall in policies though because more and more people will probably drop their health insurance or be forced to drop it because of cost. Still I don’t think it will cause a bubble effect, maybe a mild weakening of prices. Health insurance companies aren’t exactly starved for customers or profits.
June 21st, 2009 at 12:15 am
I doubt it. Hearth care is a necessity.
June 22nd, 2009 at 10:07 pm
“I doubt it. Hearth care is a necessity.”
So is banking, yet that didn’t make it immune to malinvestments either didn’t it?
The truth is that is is a bubble. Medical costs are skyrocketing not so much because there is an increase in demand but because it really is becoming more expensive to provide the same quality care today than ten years ago. Why? It’s inefficiency brought out by bad business models coupled with government policies that literally force hospitals to provide free health care while making it more difficult for competitors to break into the market.
People are not idiots in general; when health care costs rise to the stratosphere they will choose to save their resources by avoiding checkups or anything else that will raise their insurance premiums.
There is such as a thing as too many doctors, just as there are too many houses that no one wants to buy.