“IN SICKNESS” or “IN HEALTH”

The medical industry and associated occupations have long been publicized as areas of growth and employment opportunities. Demographics certainly substantiate these claims. The need for medical services greatly increases with age. People are living longer and with the aging of the “baby boom” generation, the population aged 65+ is increasing rapidly.

Nevertheless, the affordability of health care and the growing segment of the population without medical insurance may be turning the “health industry” into the “sickness industry”. From 1990 to 2004, the number of individuals nationally with no health insurance has risen by 45.8 million. Obviously, those without health insurance utilize medical services to a lesser extent or when they experience a greater degree of “sickness”.

Also, changes in the nature of private insurance, most significantly the shift to HMO’s, have affected the demand for medical care. HMO’s regulate treatments and access to specialists and hospitals, thereby in many cases limiting consumption. Approximately 25% of the population is now covered by HMO plans.

These factors appear to be slowing job growth in the medical industry. From 2003 through 2006, hospital employment in the U.S. rose 4.0% compared with 5.0% for all private industry jobs. The annual rate of growth of just over one percent was down from 2.4% for the previous three years. Reflecting the shift toward treatment in outpatient settings, the annual rate of employment growth in offices of physicians is still robust but has declined considerably over the last four years.

The recent trend of slower employment growth in the medical industry may be compounded in the future. A growing number of households can no longer budget for rising health insurance premiums. Employers are also restructuring benefit packages to shift the health care burden to the employee.

With the erosion of its manufacturing base, these trends are even more pronounced in Michigan where hospital employment rose only 2% since 2003. Access to medical care is offered to 86% of employees in manufacturing industries compared with only 66% in service industries.

The shortage of medical care workers, particularly nurses is real. However, this shortage is basically an issue of shrinking supply rather than overwhelming demand. Women who comprise the vast majority of the nursing profession are facing many more lucrative career alternatives than in the past. With intensified recruitment efforts, training initiatives, and the scarcity of job opportunities for both men and women in the state; the shortage in the nursing profession will hopefully lessen.
But what’s next? Is the medical industry healthy enough to survive as the panacea for future employment opportunities? Or will the “health industry” evolve into the “sickness industry” when most seek treatment for only catastrophic illnesses because of the unaffordable costs of medical care and insurance?

AN ANALOGY

In what way are the CANE TOAD and “free trade” the same? Well, here’s a hint – Read this to get a clue: http://www.fdrproject.org/pages/toads.htm.

Ok, need another clue? Now read this: http://online.wsj.com/public/article/SB117500805386350446-cRRynUb3zQgR2Yxn8wFOt96EOlE_20070404.html?mod=blogs

Well, as long as it was someone else’s job, who cared? But now when it isn’t just your uneducated neighbor who gets whacked – it’s you; this is a disaster. Right?

After all, the cane toad was just supposed to eat beetles, not kill off “…millions of native animals...” Hmm, so free trade was just supposed to eliminate a bunch of overpriced production workers, not us well educated elite.

What economists like Alan Blinder forgot was that the economy is reciprocal: If enough of my neighbors lose their jobs, it’s going to affect me.

Let’s face it folks, all Legacy Systems in the U.S. are up for grabs – including education and the sickness industry.

Does this spell disaster as some are predicting? Nope. It spells O-P-P-O-R-T-U-N-I-T-Y for forward thinking individuals who are willing to renounce greed and make a strong and consistent commitment to innovation, excellence and genuine concern for one’s neighbor.