HEALTHCARE INDUSTRY SLOWLY REGAINING STRENGTH

Select healthcare sectors increase hiring

According to the latest Federal jobs data and Federal Bureau of Labor Statistics, August numbers showed modest improvement in specific healthcare provider organization categories. Hospitals added about 14,000 new jobs and physician offices filled roughly 27,000 positions. Home health contributed 12,000 new hires and the dental care sector did its part by adding a robust 22,000 workers. Other sectors across the economy showed promising jobs growth as well. Within the healthcare sector, the nursing home and long term care sectors continue to suffer as admissions are down and a higher number of patients are treated via telehealth and remote monitoring (a trend which may last for a while).

COVID-19 shelter-in-place mandates and other public health restrictions hit many healthcare provider organizations harshly and unexpectantly late in the first quarter of 2020 through end of the second quarter. The rapid expansion of the pandemic and shortage of PPE was a double whammy followed by a plunge in the performance of the economy.

Promising indicators for healthcare product manufacturers

The increase of hiring across hospitals, physician practices and dentist offices may also signal an increase of procedures. Pharmaceutical, medical device and other healthcare product manufacturers dependent upon outpatient and inpatient surgical cases have lost revenue during the pandemic as various procedures were delayed or cancelled. As we approach the front edge of the 4^th quarter, any pickup in business is welcome.There is likely pent up demand for procedures to be completed due to the slowdown earlier in 20 or in regards to elective surgeries, complete cancellations.

As people seek to optimize their medical and pharmacy benefit expenditures based on deductibles they have met or knowledge of higher out-of-pocket costs facing them in 2021, there could be a moderate surge in the volume of procedures to close out the year. Such a trend will be hugely welcomed by clinicians and healthcare product manufacturers. The clinicians will appreciate the income and the healthcare product manufacturers will closely monitor the lowering of inventories.

Looking ahead to 2021

For those manufacturers that have introduced new products in 2020, a return of activity will revitalize their marketing and sales teams to close out the year on a positive note and go into the new year with renewed purpose. Companies with plans to launch new products in 2021 will be in a much better position to gain early traction if medical care activity is on the increase. Best case scenarios between now and the end of the year involve the approval of one or more COVID-19 vaccines or COVID-19 antiviral therapies to amplify the clinical and commercial recovery across the healthcare industry.