Macro-Economic Indicators in the Healthcare Industry
MACRO-ECONOMIC INDICATORS IN THE HEALTHCARE INDUSTRY
Due to the fact our industry deals with medical supplies, the healthcare sector, as a whole, tends to be our main focus area. Health care is traditionally funded through contributions paid by individuals as a percentage of their salaried income. There are, however, some countries that also provide a free public medical service funded by a national budget. Regardless of the coverage it is the quality of the medical supplies and medical personnel when dealing with preventive and corrective medicine that is determined by the below mentioned macroeconomic indicators:1
• “The proportion in GDP of health care expenditures has the same meaning like the corresponding indicator in case of education sector;
• Number of medical personnel usually expressed as the number of specialized personnel (doctors, nurses, etc.) per 10000 inhabitants.
• Number of medical institutions, by type of establishment (hospitals, clinics, sanatoria, ambulatory services) or by in-patient, respectively outpatient institutions;
• Number of beds in medical institutions, expressed in per 10000 inhabitants terms.
• Capacity utilization, showing the proportion of capacity that is effectively used, in average, in a certain period. In some countries there is an over-utilization of establishments (more patients than the number of beds, for example), while in others (the case of Moldova) the capacities are under-utilized.
• Mortality rate, by age groups, expressed as the total number of illness deceases per 1000 inhabitants; the indicator shows how efficient the medical sector is in preventing and curing the diseases.
• Number of ambulances per 1000 inhabitants;
• Average cost per patient, indicating the efficiency in using the financial resources allocated to the sector.” (Zaman, 2008).
There are other less prevalent indicators that can be used to gauge our industry. One such indicator is known as Medical Labor Production.
Due to the fact our industry deals with medical supplies, the healthcare sector, as a whole, tends to be our main focus area. Health care is traditionally funded through contributions paid by individuals as a percentage of their salaried income. There are, however, some countries that also provide a free public medical service funded by a national budget. Regardless of the coverage it is the quality of the medical supplies and medical personnel when dealing with preventive and corrective medicine that is determined by the below mentioned macroeconomic indicators:1
• “The proportion in GDP of health care expenditures has the same meaning like the corresponding indicator in case of education sector;
• Number of medical personnel usually expressed as the number of specialized personnel (doctors, nurses, etc.) per 10000 inhabitants.
• Number of medical institutions, by type of establishment (hospitals, clinics, sanatoria, ambulatory services) or by in-patient, respectively outpatient institutions;
• Number of beds in medical institutions, expressed in per 10000 inhabitants terms.
• Capacity utilization, showing the proportion of capacity that is effectively used, in average, in a certain period. In some countries there is an over-utilization of establishments (more patients than the number of beds, for example), while in others (the case of Moldova) the capacities are under-utilized.
• Mortality rate, by age groups, expressed as the total number of illness deceases per 1000 inhabitants; the indicator shows how efficient the medical sector is in preventing and curing the diseases.
• Number of ambulances per 1000 inhabitants;
• Average cost per patient, indicating the efficiency in using the financial resources allocated to the sector.” (Zaman, 2008).
There are other less prevalent indicators that can be used to gauge our industry. One such indicator is known as Medical Labor Production.
Bibliography: Zaman, C. (2008). Report: Practical guide for using main macroeconomic indicators. Retrieved September 15, 2008, from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1019869. Export.gov (June, 2007), Article: Sales Opportunities in China’s Medical Sector are Thriving, Retrieved September 25, 2008, from http://www.export.gov/china/ATC/China_Medical_flyer_current.pdf Pacific Bridge Medical – China Medical Publications (August, 2000), Entering China’s Medical Marketplace, Retrieved September 25, 2008, from Bradsher, Keith, China will allow its Currency to Fluctuate More, May, 19, 2007, New York Time, Retrieved, September 24, 2008, From http://www.nytimes.com/2007/05/19/business/worldbusiness/19yuan-web.html?_r=1&oref=slogin