Saturday, November 18, 2017 21:44

Health Care Industry Emerging Out of Recession

Posted by on Wednesday, January 27, 2010, 6:28
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Good news is here. The health care industry which was facing the consequences of the recession is now emerging out of financial crises. Job cuts were on high in the health care industry due to this. But, now everyone can think of some positive things to be happening in the coming future. Many companies have even started calling back the employees that have been asked to leave the job due to the recession. Health care industry was basically divided into two sectors, one was of branded drugs and another was of generic drugs. Branded drugs suffered the maximum loses in the recession in comparison the generic drugs. But, one thing that recession changed was the customers’ point of view towards the generic version of the medications. People are now buying generic drugs without any doubt in the mind.

Health care industry didn’t face the recession problems during the first phase of the recession as everyone requires the medicines. Thus, even the manufacturers were not thinking of recession, but the things changed when the demand for the medicines in the market started declining. The demand declined to such an extent that some closed their manufacturing units for the particular drug. The decline in demand decreased by about 60%, which means people were not buying the drugs at all. Yes, it was true that it was the time in the last year, when people didn’t spend anything on the health care. This was really a very bad phase for the health care industry. Pharmaceutical companies thus started cutting down the costs in all sections wherever they can save the money.

The main thing that affected the sale of the branded medications was the outburst of the generic drugs in the market. The low cost of the generic drugs made them a famous option in the market.
Generic drugs were available at about 60% or 70% low costs than of the branded medicines. This made branded drug producers to think and certainly they also reduced the prices just neglecting there profit range. They thought this will help them to stay in the market. Certainly it helped but lot of loss the branded drug producers suffered due to this. But, by the end of last year even generic drugs manufacturer were facing the heat of recession due to the lowering prices of the branded drugs.

The option of the online pharmacies helped the health care industry a lot by providing the global market for the medicines. Internet drug stores certainly helped them health care industry to back on track. Online marketing of the medications was never that much preferred by the customers, but during the recession the low prices offered by the online pharmacies worked wonders and people started buying the medications online. This certainly helped the health care industry to survive during the tough time of the recession. The helping hand of the online pharmacies helped the health care market to emerge from the recession.

Health care industry by the starting of this year started gaining back. Profits were not gained but they were able to get the business that was able to recover the cost of the production. Health care industry gradually started progressing. The impact of the swine flu also made people to think about their health. This also led to the increase in the sale of the medications as people went to the doctor if they were sneezing due to the normal flu. Whatever might be the reasons, but the health care industry recovered strongly from this phase of recession and by the next year even the new job openings can be seen in the health care sector also.

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