Last month, Inc. Magazine released their annual list of the 5,000 fastest-growing, private, for-profit companies in the U.S. The companies that apply are ranked based on their percent revenue growth from the previous three-year period. Not surprisingly, the number one fastest-growing company, CareBridge, with 157,144% revenue growth from 2019-2022, operates within the health services sector. In fact, three of the top ten companies on the list are from the health services sector. Of the 5,000 companies on the list, health service companies account for 271 of them. Those same companies added 77,755 jobs to the economy and had median revenue growth of 304%.
The health services sector is one of the most rapidly growing. With increased healthcare spending, chronic disease prevalence, population growth, and a greater percentage of the population reaching age 65, the need for health services shows no sign of slowing down. In the U.S, the population age 65 and older increased 38% from 2010 to 2020, and now represents approximately 17% of the total U.S. population. That number is expected to grow to 22% of the total U.S. population by 2040, according to a 2022 report from the Administration on Aging. The report also found that most Americans age 65 and older have one or more chronic conditions. These include: arthritis (47%), cancer (26%), diagnosed diabetes (21%), coronary artery disease (14%), and COPD, emphysema, or chronic bronchitis (11%), among other long-term diseases.
Since we know the trajectory of health services, which sub-sectors are going to be of greatest demand?
Telemedicine
The COVID pandemic accelerated the need for telemedicine, and as a result, virtual consultations and remote patient monitoring are sometimes preferred by patients who don’t want to jeopardize their health while receiving quality care.
Home Health Care
Patients who are home-bound or cannot drive or get around easily can benefit from home health services such as post-surgical care and rehabilitation.
Mental Health Services
The importance of mental health as part of overall health and the decrease of the stigma once associated with seeking mental health care has increased the demand for services.
Assisted Living
As the population ages, assisted living facilities will fulfill the need for graduated care services, allowing residents to maintain independence as long as possible.
Wellness and Preventive Services
With a more health-conscious population, wellness-geared care such as screenings, health coaching, and nutritional counseling will be sought after to prevent disease rather than manage illness.
Is your region targeting health service companies as part of your expansion/retention initiative? Is your workforce poised to meet the demand for these services, or are they perhaps more inclined towards the health product side such as researching and developing specialty medicines and therapies or creating digital platforms? Whittaker Associates has decades of experience in both business expansion and workforce development in the health service/product industry. If you have any questions for us, just ask!