Healthcare is an ever-present commodity. But today, the healthcare industry is becoming more preventing than curative than ever before, which brings us to the question: should you invest in the healthcare sector? If you aren’t sure of the answer yet, here are the reasons why investing in the healthcare industry can be beneficial for you:
1. More investment opportunities
Health and wellness businesses are popping left and right. And with so many options to choose from, the only thing you have to do is find the right one to invest your money in. Here are some healthcare investment niches that you can choose from:
- Urgent care and specialized urgent care
- Pain management
- Lab businesses
- Pharmaceuticals
- Medical technology, EHRs, telemedicine
- Behavioral health, substance abuse treatment
- Anesthesia practice management
- Hospice care
2. A chance to diversify
Diversifying your investments helps protect you against devastating loss in case of calamities. Take the COVID-19 pandemic, for example. If all your assets are in the retail industry, the pandemic will cause significant losses as lockdown guidelines prevent customers from going to businesses. But if you have investments in the healthcare industry, you will still make a profit, if not break even.
You can even further diversify your investments within the healthcare industry itself. For instance, you can invest in various areas of healthcare, such as pharmaceutical companies, urgent care facilities, medical IT companies, health insurance companies, and more.
3. Rising demand trends
Several trends in the population all point to the rising demand for healthcare. These are:
- Aging population. As life expectancy rises and birth rates decline, the aging population continues to grow and is expected to have significant economic impacts soon (some are already felt today). This implies that as the population is aging globally, the demand for healthcare, medication, and long-term care will rise.
- Obesity. According to WHO, more than 2016 adults were overweight, 650 million of whom are obese. Unfortunately, these figures don’t seem like they will decline anytime soon, especially with the proliferation of unhealthy foods and lack of access to healthy, fresh food. With that, chronic illnesses such as diabetes and heart disease are likely to rise, which will increase the demand for healthcare with it.
- Technology. Modern technologies are helping people live longer and have a better quality of life. As a result, people living with chronic diseases will want to buy technologies that can extend their lifespan and make life more comfortable.
4. A bright future
Innovations in healthcare are made every day. The technological advances today show that science is making leaps and bounds as we speak, which implies that we can expect to see even more medical innovations in the future. Seeing that the future is bright for this industry, investing now can bring back enormous returns tomorrow.
To illustrate, here are some of the best advancements in medicine that were made recently:
- Artificial organs
- Robotic surgery
- Wearable health devices
- Precision medicine
- Telemedicine
- Artificial intelligence in healthcare
- Advances in cancer treatment
- 3-D printed healthcare products
5. Young consumers
Younger generations are more concerned about their health than the generations that preceded them. As you can imagine, the generation that inherited global warming is just as worried about their own health as they are with Mother Nature. Millennials, to be specific, are spearheading the movement towards healthier lifestyle choices, as well as the prevention of chronic diseases. This means that as the younger populations outgrow the previous ones, you can expect the demand for healthcare to rise as well, particularly in preventive care.
6. Ever-present demand
Whether high or low, there is always going to be a demand for healthcare. People are always going to get sick. Hospitals are always going to have patients. Medicine will always need to be manufactured. Unlike other industries, healthcare is one of the sectors that will always be essential even as the world falls apart. But is the business always going to be profitable? Probably not; there is still a possibility to encounter sluggish growth along the way. However, investing in healthcare with its ever-present demand is likely less risky than investing in retail or oil.
If you need one last reason to invest in healthcare, it should be this: Investing in healthcare allows you to improve people’s lives and make a difference in the world. By putting your money in a sector that deals with people’s health, you play a part in enhancing healthcare for everyone.
Do these reasons convince you to invest in healthcare? Please tell us what you think in the comments below.
