Zippia estimates that the US healthcare industry was worth $714.4 billion in 2021. Although this sector is profitable, many modern investors overlook it favoring well-known investment vehicles like real estate, cryptocurrency, and exchange-traded funds. One of the main reasons investors overlook the healthcare industry is that they don’t know the numerous benefits one can get from investing here. If you are considering investing in this sector, here’s why you should go ahead as planned.
- Great investment opportunities ahead
New technology is being discovered every day, and the healthcare industry is one of the biggest beneficiaries of technological advancements. Therefore, the investment opportunities in the future healthcare industry will be highly rewarding. For example, genetic research advancements provide new insights into diseases and more effective drug development. Therefore, there are endless opportunities for profit if you can provide these medical products and services to various healthcare businesses that will need them in the future.
You may be familiar with not putting all your eggs in one basket to reduce investment risk. Indeed, financial experts agree that you must diversify your investments to avoid losing everything when disaster strikes in one industry. If you don’t already have some part of your cash in healthcare, this sector presents an excellent opportunity to diversify. There are even more opportunities for diversification within this sector itself. For instance, you can invest in medical equipment, drugs, and big pharmaceutical companies’ stocks. Healthcare facilities like doctor’s offices, field hospitals, wellness centers, and senior living communities are great investments. However, check out the conditions you must satisfy to invest in these facilities. For example, check out field hospital requirements before setting up such a facility to ensure it meets the necessary logistical and clinical standards.
- Aging population
The recent census shows that 16.5% of America’s population is over 65. This percentage was much lower just 10 years ago, meaning it will undoubtedly be much higher in the next decade. It is no secret that older adults require much more medical care than their younger counterparts, with many aged individuals having at least one chronic condition. Therefore, you can earn a lot of money now and in the future by establishing a medical facility with trained professionals who can cater to the demands of the aging population. Investing in medical equipment and pharmaceuticals is also a good idea because demand for these products will soar in the coming years.
- Government initiatives
The federal government has always had a keen interest in healthcare for decades, evident by the implementation of initiatives like Medicare, HIPAA, and Obamacare. This trend will likely continue irrespective of which party is in power. The good news for investors is that every time the federal government tries something new, it creates various investment opportunities that key healthcare stakeholders can benefit from. For instance, hospital stocks shot up due to Obamacare’s goal of insuring more Americans. Similarly, electronic health system (EHS) vendors hit the jackpot thanks to the favorable economic stimulus legislation of 2009. The government will keep bringing initiatives in healthcare, so there will always be opportunities to profit from industry changes as a savvy investor.