Displaying items by tag: healthcare

The healthcare sector faced significant turbulence following President-elect Donald Trump’s announcement of Robert F. Kennedy Jr. to lead the Department of Health and Human Services. Kennedy’s longstanding skepticism about vaccines has sparked concerns about its impact on public health and industry stability, leading to sharp declines in shares of vaccine producers like Moderna and Pfizer. 

Analysts suggest his leadership could reshape regulatory frameworks, adding uncertainty for pharmaceutical companies and possibly affecting vaccine uptake. Biotech firms also saw notable losses, while psychedelic therapy companies experienced gains, bolstered by Kennedy’s apparent openness to advancing their approval process. 

Meanwhile, the medical technology sector showed relative resilience, though experts caution that indirect impacts could still emerge. As Kennedy prepares to oversee critical agencies like the FDA and CDC, the industry braces for policy changes that could redefine its landscape.

Finsum: Don’t undersell the impact of inertia in regulatory process and now one might capitalize on a dip in health stocks. 

By 2040, adults retirement age are expected to make up 22% of the U.S. population, creating new investment opportunities in sectors catering to an aging demographic. One promising area is medical outpatient buildings (MOBs), which are increasingly in demand as healthcare systems shift toward outpatient care to provide more flexible services. 

A notable example is KKR & Co.'s partnership with Healthcare Realty Trust, which has already committed nearly $500 million to acquire and develop MOB properties. 

While Healthcare Realty Trust has faced challenges, including tenant bankruptcies, it has made strides in improving its financial stability and expanding its portfolio. With favorable demographic trends and a focus on outpatient facilities, the company may have a strong runway for future growth despite current market volatility.

Finsum: This is innovative thinking and could prove a useful way to invest in healthcare.

The U.S. is seeing 30-year records on inflation, and whole generations of American’s have never seen inflation this high. Even worse inflation is even more elevated for healthcare services. Healthcare inflation is expected to be nearly 12% for the next two years according to HealthView Services. This could be a huge hole in retirement savings as a couple of retirees today can expect to spend over $85k on healthcare, those retiring in a decade over $160k and those in the next two decades just shy of $260k. Moreover, social security won’t be enough as the cost of living adjustment doesn’t track healthcare inflation or even standard inflation. Meaning healthcare costs will eat away at most of Social Security.

Finsum: HSAs are more valuable than ever given these ridiculous healthcare inflation costs.

Covid has forever changed lots of industries but one of the most apparent is healthcare. Incidents for the chronic and specifically geriatric population are growing at an alarming rate and will significantly benefit from an increase in at-home care. The current at-home healthcare market is around $3.2 billion but growing at a 13.4% CAGR by projections will move this to a $7 billion industry over the next 4 years. This isn’t limited to just domestic products an aging population is driving rapid growth across Europe and Asia as well.

FINSUM: It makes sense that healthcare will move more at home. Software and digital products will improve the healthcare many in treatment will have access to inside their own home.

Inflation is a concern for retirees, but they should be more concerned than ever becauseSocial Security is tracking the wrong index. Currently Social Security bases its cost of living adjustments on the consumer price index for Urban Wage Earners and Clerical Workers (CPI-W). However, the CPI-W doesn’t fully account for the costs of healthcare and housing that burden retirees more than other groups. Instead social security should track the Consumer Price Index for Elderly (CPI-E) because this is the demographic they are targeting. Research shows that the average social security account since 1983 is in a 0.2% compounded deficit. The rate of inflation for healthcare is slowing which could end up benefiting retirees moving forward but that's just a prediction.

FINSUM: Social security won’t be keeping up with your healthcare costs and investors should augment their portfolios to compensate.