By Dana Jacoby
Where Medical Facilities are Spending Money
Healthcare policy changes in the United States significantly impact the medical industry, and investors are paying close attention. Here are four ways healthcare policy changes affect investment in the industry.
1. Innovation
The 21st Century Cures Act is driving investment in innovative medical technologies. The Act, signed into law in 2016, created a new pathway for approving medical devices and drugs, and allocated billions of dollars in funding for research and development. Doing so has created opportunities for investment in areas like precision medicine, digital health, and gene therapies.
2. Medicare Access
Changes to Medicare reimbursement policies are also impacting investment in the healthcare industry. As the population ages, Medicare becomes an increasingly crucial payer for healthcare services. As a result, changes to reimbursement policies can create opportunities for investment in home healthcare, chronic disease management, and telemedicine.
3. Patient-Centric Healthcare
The rise of consumer-driven healthcare is changing the way providers deliver and pay for healthcare services. In addition, patients increasingly seek services that offer convenience, transparency, and affordability. This trend drives investment in telemedicine, retail healthcare, and direct-to-consumer healthcare services.
4. Pharmaceutical Changes
Finally, regulatory changes related to drug pricing influence pharmaceutical industry investment. Changes to drug pricing policies can create uncertainty for investors, making it more difficult to predict the financial returns on drug development and commercialization. However, regulatory changes can also create new opportunities for investment in areas like biosimilars and specialty drugs.
The Effect of Healthcare Policy Changes
Healthcare policy changes in the United States are having a significant impact on investment in the healthcare industry. From the ACA to changes in Medicare reimbursement policies, investors are closely monitoring the regulatory landscape and making investment decisions accordingly. As the industry evolves and adapts to new approaches and trends, expect continued innovation and investment in the telemedicine, primary care, and consumer-driven healthcare services sectors.
These policy changes are driving investment in emerging markets and technologies, including:
- Remote healthcare, which is seeing increased demand due to changes in reimbursement policies and the increase in virtual care during the COVID-19 pandemic.
- Primary care, which is becoming a more attractive investment opportunity as healthcare providers move toward value-based care models and focus on improving population health outcomes.
- Consumer-driven healthcare services, which are becoming more popular as patients become more engaged in their own healthcare decisions and demand greater transparency and convenience.