4 Key Parts of the Medical Industry
When you visit the doctor to receive your yearly physical or a referral to a specialist, you probably don’t think of your physician’s practice as a business. Although hospitals and doctors’ offices provide different services than most businesses, they are still vital to the United States’ economy. The following elements are crucial to the success of the medical industry.
Funding Sources
Even medical professionals have to take out loans sometimes, particularly when they invest in new equipment. Traditional loans are available, either through a private bank or with the endorsement of the Small Business Administration. Other doctors avoid taking out loans by selling their accounts receivable for a cash advance or taking out a line of credit.
Production and Sale of Medical Devices
Doctors need certain devices to perform their jobs. Every office has many blood pressure cuffs, several thermometers, a scale, and a stethoscope. Depending on the doctor’s specialization, he or she may have other advanced machines, including ultrasound machines, X-ray machines, and endoscopes. These machines are designed and tested by biomedical engineers and produced and sold in factories. By the time a machine arrives at a doctor’s office, many people have profited from it.
Production and Sale of Medical Equipment
Medical equipment refers to items that do not require specialized training to use. While they are not as advanced as medical devices, they are just as important to patients’ health and the medical industry. Equipment includes the tables that patients sit on and personal protective equipment. Their design is not as big of an industry as medical device design, but the production of medical equipment involves lots of money and provides many jobs.
Relationship with the Government
The US government has a complicated relationship with the medical world. The Affordable Care Act exists, but it has undergone many changes since it became law in 2010. Still, many patients use the program to pay for their medical expenses. Doctors and their receptionists must be well-versed in healthcare law so they do not overcharge their patients. Another issue between the government and this industry is a tax on medical equipment and devices set in 2013, which makes these purchases more expensive.
The world of healthcare financing is complicated and governed both by economics and government regulations. As doctors try to help their patients, they must also pay their bills and keep up with their supply needs. Without these aspects of the medical industry, they would struggle to stay in business.
