Being in the medical sector can be profitable, but many limit it to hospitals and clinics. Fortunately, these services can help you break through it.
The medical industry is incredibly profitable and has seen tremendous growth over the past decade. Hospitals and clinics, in particular, have experienced gains of up to 6% year-over-year since 2010. This impressive growth is attributed to various factors, including increased access to healthcare thanks to technological advances, the rising cost of treatments, and improvements in the overall quality of medical services.
In 2019, hospitals around the world likely earned a total revenue of around $3 trillion, up from $2.5 trillion just five years prior. Of this figure, approximately half was generated from outpatient care – with visits to emergency rooms (ERs) accounting for nearly 20% of that alone. These numbers demonstrate that hospitals and clinics are critical earnings drivers for the medical industry.
According to an American Hospital Association (AHA) report, U.S.-based hospitals saw an average return on equity (ROE) of 7.8%, substantially higher than most other industries at that time and well above their median 6.9% ROE from 2001-2010. This indicates that hospitals remain profitable even during economic downturns such as recessions, with a small exception during the pandemic.
However, building a hospital or clinic might be out of reach to you. If you still want to break into the profitable medical industry, there are other services that you can offer.
Healthcare IT Services
The medical industry has seen a dramatic shift towards the use of technology and reliance on healthcare IT services. This trend is driven by advances in medical treatments and technologies and a need for more efficient data storage and analysis. The increased use of technology in the medical industry has allowed healthcare providers to reduce costs, increase access to information, and improve patient outcomes. Here are a few things to note:
Medical Treatments Advancements
One of the primary reasons medical providers increasingly rely on technology is advancements in medical treatments such as robotics, artificial intelligence (AI), and telemedicine. These advances have allowed healthcare providers to conduct more precise procedures with fewer risks and costs. Furthermore, these technologies enable healthcare providers to diagnose conditions quickly, leading to faster treatment plans and improved patient outcomes. Additionally, AI-enabled robotic systems can assist with complex surgeries that would otherwise require highly-trained surgeons.
Electronic Health Records
Data storage and analysis are the other significant factors driving the shift toward technology in the medical industry. Many hospitals and clinics now store massive amounts of patient data in electronic health records (EHRs) for easy access and analysis by physicians. Accessing this data gives doctors better insight into their patient’s health, allowing them to identify potential issues or treatments that may be required quickly. Furthermore, EHRs also provides streamlined access to patient information so that it can be shared across different departments within a hospital or clinic.
Cloud-based Software Solutions
In addition to EHRs, healthcare IT services offer an array of services that help streamline operations within a hospital or clinic setting, such as cloud-based software solutions for billing management and secure document sharing between providers. Healthcare IT professionals can also provide valuable insights regarding best practices for optimizing operational performance with specialized technological applications such as online appointment scheduling systems or automated systems that notify staff about critical changes in patient conditions during their stay at a facility.
Medical Laboratory Services
Medical laboratory services are another essential service you can offer in the medical industry. These services provide healthcare providers with a wide range of diagnostic testing and analysis capabilities to identify potential illnesses or health concerns. Medical laboratories typically operate as independent entities, meaning they don’t need to be part of a hospital or clinic to offer these services. Here are a few lab tests you can provide to hospitals and clinics:
Hematology
If you have a staff of qualified lab technicians, you can provide hematology services. Since bloodwork is vital to diagnosis and treatment, medical laboratories are essential to the medical industry. Tests such as white blood cell count, red blood cell analysis, and platelet counts help doctors quickly identify potential illnesses or health concerns. You must invest in hematology instruments to ensure profitability.
Medical Imaging Services
Medical imaging services are also critical for providing accurate diagnoses for various conditions. From X-rays to CT scans, these tests provide detailed images that allow doctors to understand their patient’s issues better and develop an appropriate treatment plan. As a result, hospitals rely heavily on medical imaging services from external providers like you.
Biotechnology Services
Finally, biotechnology services are another important service you can offer in the medical industry. This involves utilizing genetic engineering techniques to develop new treatments or diagnostics for various diseases, such as cancer and HIV/AIDS. This service requires specialized equipment and highly trained technicians, but it can be incredibly lucrative if done correctly.
Ambulatory Services
Ambulatory services are also critical in the medical industry. These services include outpatient care, such as physical therapy and doctor’s office visits. This type of care is usually less expensive than traditional hospitalization and can be provided at a patient’s home or an ambulatory center.
The first step towards building ambulatory services is to create a network of providers who can provide these services. You should also find ways to make your services more accessible, such as offering telemedicine and home visits.
Final Thoughts
In conclusion, there are several ways to break into the medical industry without building a hospital or clinic. Healthcare IT services, medical laboratory services, medical imaging services, biotechnology services, and ambulatory services are ways to offer value-added solutions that help hospitals and clinics stay profitable. With proper planning, you can be well on your way toward success in this lucrative industry.