Question

What demographic factors impact volume and future revenues in healthcare?

Answer 1

As the world population rises and globalization across the world reduces the impediments of movement of labour across the world. This is going to create significant opportunites as well as challenges for the healthcare sector. The key demographic factors which are going to impact the volume and future revenue for healthcare sector are:

• Ageing population : The major sources of revenue is going be from demographics in developed world where the population is ageing. A lot of healthcare expenditure is done by the government to provide a decent level of life as well medical fascilities. Providing affordable healthcare to large number of ageing population in developed world can be a significant source of revenue.
• Technological Innovation : Technology has impacted almost every sector, the impact of technology is different in different sectors but one thing isfor sure that technology has reduced the cost of providing healthcare even in remote places.
• Standard of Living: People with high disposable income do spend significant on healthcare. As the level of income increases in developing world, the standard of living will certainly will increse and so will awareness about healthcare.
• Race and Ethnicity; Due to different race, ethnicity and different climate people do face different types of health issue. People living in colder region face different health issues than poeple living in warmer region. Providing affordable and right cure can also differentiate the revenue sources.
• Economc growth : Countries with high economic growth have more resources at their disposal to provide healthcare fascilities but the economies which are facing recession have to cut down on these fascilities. Developing economies which are growing at fast pace can be a significant source of revenue.
• Large population: Countries where the population is huge like India, China, provding affordable healthcare can be significant source of revenue. The cost of providing those services per consumer goes down where the revnues goes up. This is because of economies of scale.