For various reasons, the healthcare industry is expected to maintain steady growth in the next decade. Advances in medicine and medical have extended the average life expectancy of most people and require longer health care. In the past few years, once people are 65 years old and take medical insurance, they are expected to live another 10 to 20 years. Today, some people live in their 90s and it is not uncommon to need more than 30 years of health care services. The biggest growth potential in the healthcare industry is because the largest groups of baby boomers are starting to retire.
So, the leaders in the healthcare sector have learned to combine these diverse elements in the right ratios to thrive in the modern marketplace. As the companies adopted new regulations and added new partners in pharmaceutical and biotech mergers-and-acquisitions spree, some chosen few in this sector have adapted to these dynamic changes and made a place for themselves in Fortune 500.
Let’s delve a little deeper into the companies that are making a mark in this new-age arena of Health-Care Technology:
- United Health Group ($226.2 billion) – One of the world's largest healthcare service company serving more than 50 million people in the US by the end of 2018 and 5 million in Brazil. It has also established a prescription drug business through the recent acquisition of the OptumRx, which includes health data analytics as well as pharmacy benefits manager. This should help the company develop because currently it has 1 billion years of prescription claims. UnitedHealth Group is the number one company in the Health and Insurance Management category of Fortune magazine's 2019 "World's Most Admired Companies" list.
- Medtronic ($30.5 billion) - A global device manufacturer dedicated to the development of pacemakers, defibrillators, orthopedics, diabetes management tools and many other medical devices. The company has a 50% market share in the core device industry. It is also a leader in spinal products, insulin pumps and chronic pain neuromodulators. Medtronic appears to be very active in 2019, especially its pipeline for the treatment of atrial fibrillation, aortic stenosis and neurological diseases.
- Abbott Laboratories ($30.6 billion) - A diversified healthcare products company focused on nutrition, diagnostics, generics and medical devices, following the spin-off of the 2013 AbbVie Prescription Drugs division. The company recently implemented a cost reduction plan that should drive profitable growth.
- McKesson ($208.4 billion) – one of the largest pharmaceutical distributors in the United States, dedicated to deliver better care including pharmaceuticals, medical products and healthcare information technology. With more than $100 billion in annual revenue, McKesson has become a strong player in the industry. Its size allows size and price negotiations, and its smaller peers cannot compete with it.
- CVS Health ($194.6 billion) – a health insurance company in Aetna, Inc, after the merger, it joined the world's largest health care issue. The transaction enables newly merged companies to offer a wide range of traditional, voluntary and consumer-directed health insurance products and related services. By the end of 2018, Aetna's healthcare department provided HMOs, POS, PPO and compensation benefits to nearly 40 million members.
- Cigna Corporation ($48.7 billion) - one of the largest investor-owned employee benefit organizations in the United States, providing HMOs, POS and PPO to millions of customers in 16 states. In December 2018, Cigna completed the acquisition of Express Scripts Holding Company, the largest pharmacy welfare manager in the United States, providing prescription services through the retail market and home delivery. As these advances in the industry help Americans live longer and healthier lives, the demand for healthcare and medicines is growing.
- Stryker Corporation ($13.6 billion) - manufactures specialty surgical and medical products such as orthopedic implants, endoscopic items and hospital beds. The company is known for its long-term record of innovation in key markets, which has earned it substantial profits. Stryker aims to differentiate itself from its competitors by focusing on rebuilding implants. Hospitals and healthcare systems have begun to integrate suppliers, which should benefit Stryker.
- Cardinal Health, Inc. ($194.6 billion) – one of the leading wholesale distributors of pharmaceuticals, medical supplies and surgical supplies. The company distributes to chain pharmacies, hospitals, backup care centers, supermarkets and large store pharmacies. Cardinal plays a key role in the pharmaceutical industry; many supply chain participants rely on their services to streamline product distribution and procurement.
- Thermo Fisher Scientific ($32 billion)– It supplies analytical instruments, laboratory equipment, software, services and consumables, pharmaceutical and biotechnology companies, hospital and clinical diagnostic laboratory reagents, chemicals and supplies. It is a one-stop shop that allows scientists, researchers and healthcare professionals to order products through extensive internal development or development through recent acquisitions.
- Johnson & Johnson ($81.6 billion) – It is one of the most the largest and most broadly based healthcare company in the world. Teams from J&J’s consumer business are creating digital tools to help people track the health of their skin. With a total of 24 brands that bring in over $1 billion in sales, most of this is attributed to the company’s pharmaceutical division, is one of the fastest growing companies in the U.S., Europe and Japan.