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Taking Our Pulse
Today's news reflects the imperative and difficulty of gauging the health care industry. CMS (the Medicare and Medicaid agency) reports that health expenditure growth will outpace expansion of the overall economy in the next few years, no surprise given the recession.
Spending by public payers is expected to grow faster than private sector health spending. In fact public health care costs are projected to exceed private costs by 2016 even without the prospect of a new, nationalized health care system. Slower income growth, a decline in the numbers of insured, and the aging population are taking their toll in this shift to dependence on public health services.
Meanwhile, on the market side, according to Global Industry Analysts, some medical segments are projected to fair quite well despite the recession. Examples include endoscopy and health IT.
So, in a moribund economy, the health sector is alive and kicking.
See you tomorrow.
Barbara Kram, Editor










