The health care industry involves the organized activities related to health care services provided to a community. It includes health care services, suppliers of these services like physicians and nurses, and users of the services. The logistics of providing and acquiring health care services involves costs related to infrastructure, personnel, delivery, marketing, and payment sources like users, insurance, and government funds. Key factors that affect all aspects of the health care industry are demand for services, supply of providers, regulations, competition, and sustainability.

1. Overview of the
Health Care Industry

2. Health Care Industry
organized activities
going on in the field of health care
in the community

3. Health Care Industry
Elements:
–Health care services
–Suppliers for the health care services
–Users of the health care services
–Logistics for the health care services – suppliers and
users
–Factors affecting all of the above – such as demand,
supply, regulations, sustainability, etc.

4. Health Care Industry
For a physician-to-be
for a physician-manager-to-be
for a physician who will establish a private medical practice
after graduation
for a physician who will be administrators of health care
programs and organizations
it will be helpful to have an overview of the health care
industry.
Knowledge of such will be useful in the planning of the
physician in any of the above roles.

5. Health Care Industry
What is a health care service?
It is a service intended for the prevention, treatment, and
management of illness and the preservation of mental and
physical well-being of human beings.

6. Health Care Industry
What are different types of health care?
Personal /private health care – benefits only the user of the
service directly. Most of curative care will be in this category.
Public health care – benefits the community as a whole,
whether or not they are conscious user of the service. For e
xample, spraying for mosquito control benefits the entire co
mmunity

7. Health Care Industry
Who are the suppliers of the health care services?
Physicians, nurses, and allied health professional providers.

8. Health Care Industry
Who are the users of the health care services?
Direct users – persons in immediate need of health care
services.
Indirect users – people or organizations providing the pre-
need and in-need health services of their clients, staff, and
loved ones.

9. Health Care Industry
What are the logistics involved in providing health care
services?
•Cost in establishing an infrastructure for the health care
services.
•Cost in providing health care professionals in health care
organizations.
•Cost in delivering the health care services.
•Cost in marketing the health care services.

10. Health Care Industry
What are the logistics involved in acquiring health care
services?
Direct users pay for the cost of the health care services.
Indirect users pay for the cost of the health care services.

11. Health Care Industry
What are the usual sources of funds for health care services?
Direct users
Health insurances
Government thru taxes and other funds

12. Health Care Industry
What are the factors affecting all of the above?
•Demands – amount of users (number of people in need of
health care services; number of people who can afford; etc.)
•Supply – amount of health care providers (physicians,
nurses, and allied medical professionals)
•Accrediting and regulatory bodies such as Department of
Health and PhilHealth; BIR (taxes)
•Competition
•Sustainability