2021 Investment Guide: Investing in the Healthcare Industry
Originally Published Dec 16, 2020
Healthcare is an important pillar of any strong society. It’s always been the focus of innovation and technology with the goal of helping people to live better and live longer.
But healthcare is also a business and it offers an opportunity for investors to find success. Healthcare bleeds into nearly every other industry imaginable, from food production to manufacturing, every niche seems to have a healthcare component just below the surface.
Even if you never imagined getting involved in the healthcare industry, it’s a fast-growing sector of the economy and in 2021, it’s a field that investors should definitely pay attention to.
Here, we’re explaining why healthcare is a smart investment, which sectors of healthcare have the most potential, and how you can start investing in healthcare in 2021.
Healthcare is a Fast-Growing Industry in 2021
For reasons we’ll explore more below, healthcare is a fast-growing industry and at this rate, it’ll continue to boom in 2021.
It goes without saying that COVID-19 put a lot of focus on our healthcare sector. Healthcare workers put in longer hours (and that’s saying something) and came up with innovative solutions to a global problem. The fight’s not over, but it makes sense that 2021 only means more opportunities for the healthcare industry to be prepared for anything.
Plus, Australia’s ageing population requires more specific healthcare with sectors like physiotherapy, occupational therapy, and therapies for age-related conditions taking on more importance as Australians continue to live longer.
Not to mention, healthcare blends with many other fast-growing industries - which leads to our next point.
Healthcare Permeates Many Other Industries
In almost every niche that’s exploding with innovation and business opportunities, healthcare permeates.
Construction? Well, there’s always a need for healthcare infrastructure. New hospitals, new clinics... the options are endless.
Manufacturing? Someone’s got to make all the face masks, gloves, and medical equipment, right?
Technology? Do we even have to say it? Healthcare technology comes in all shapes and sizes from the actual research done to improve vaccines and therapies but also when it comes to automating the patient experience and implementing telehealth capabilities.
Long story short, if it’s a big deal for the national economy, chances are, healthcare has a way of fitting its piece into the puzzle.
Healthcare Will Always Be Important
Finally, healthcare businesses are smart investments because healthcare will always be important. Regardless of our age, circumstances, or economic status, healthcare is important to each and every one of us.
The good news is that Australia has one of the strongest healthcare systems in the world. Our healthcare industry has been booming for decades and shows no signs of slowing down. As long as healthcare is important (which we can’t see why it ever wouldn’t be), it’s smart to invest in a healthcare business.
Best Healthcare Sectors to Invest In During 2021
It’s clear that 2021 has healthcare leading the way. Based on the stock market and investor reports, most of the healthcare industry is booming - only to grow faster in the post-pandemic landscape.
So, whether you’re looking to invest in stocks or you’re wondering whether it’s a good idea to invest in a healthcare franchise or start-up, there’s a good chance you’ll do well by investing in a healthcare business.
In particular, here are the top healthcare sectors expected to make big waves in 2021.
- Healthcare Technology and Biotech
- Pharmaceuticals and Vaccines
- Medical Products and Materials
- Healthcare Infrastructure
- Aged Care
Healthcare Technology and Biotech
As with many industries, healthcare requires a lot of technical innovation. Healthcare technology is a booming industry that’s expected only to expand in 2021.
Healthcare technology refers to any technology that can be used in healthcare. This could be robotics, computer engineering, and everything in between. It’s a massive sector of the industry where the sky’s the limit. There’s really no saying what’s next for technological advancements in the healthcare industry.
Not only is technology important for the actual practitioners, but for the patient experience as well. Online waiting rooms, digital booking systems, and telehealth, in general, is expected to take off as well in 2021.
So, if you have the opportunity to invest in a healthcare technology company, it’s a solid idea to take it.
Pharmaceuticals and Vaccines
We’ve been hearing a lot about vaccines during these strange times and pharmaceuticals have always been a sector of healthcare that’s growing and changing.
While, in recent years, vaccines have become a controversial topic, the laboratories that produce them continue to work as hard as ever to make vaccines safer and more accessible. Especially with the COVID-19 vaccine breaking new ground and hopefully become widely available in 2021, it’s a worthy investment if you’re so inclined.
However, pharmaceutical research is always needed. After all, the medications that help us recover from otherwise lethal infections and viruses are a huge undertaking and require a lot of capital and investors. It doesn’t look like this industry will be slowing down anytime soon.
Medical Products and Materials
Medical products and materials are the basics of what makes up our modern medicines. Basically, they’re the living materials like antibodies that are researched and experimented with to create the pharmaceuticals we all use.
Sometimes, investors can overlook the necessity of these individual components. So, instead of investing only in the finished healthcare product, think about investing in healthcare suppliers of medical products and materials.
Just as construction, in general, is an important and stable industry for investors to enter into, healthcare infrastructure is also a growing industry in 2021.
One of the lessons we’ve learned from the pandemic is the need for well-equipped hospitals and clinics - and plenty of them. So, it makes sense that healthcare infrastructure is set to boom in 2021 and beyond.
Every year, Australians are living longer and require different healthcare than their younger counterparts. With an increasingly ageing population, aged care is a healthcare sector that continues to boom in Australia and globally.
Finding effective ways to care for the elderly is a challenge worth facing and presents many new opportunities for innovation. Whether in terms of aged care facilities, specific techniques for the elderly like physiotherapy or occupational therapy, or medical research for age-related conditions like dementia are all ripe for investor interest.
Although we touched on it briefly, it deserves its own mention because telehealth is expected to absolutely explode in 2021. After months of lockdown and patients being more nervous than ever about in-person appointments, telehealth could be the new face of the healthcare industry.
Telehealth refers to healthcare provided via telecommunications technology including telephone, email, video, and other remote communications offerings.
For example, video sessions with your physiotherapist would be considered telehealth. Renewing a prescription online from your GP is Teleheath. Having your dermatologist email you information on your folliculitis is also considered telehealth.
Although most healthcare practices have been slower than other industries to take full advantage off remote offerings and telecommunications technologies, it seems like the time is now for more patients and practitioners to get on board with telehealth.
Of course, it makes sense that the uptake has been slow. Sensitive, private information concerning healthcare comes with a lot of red tape. However, with telecommunications technologies finding new ways to ensure confidentiality and security, investors should definitely jump on any telehealth business opportunities they might come across.
How to Invest in a Healthcare Business
So, how do you make a business investment in the healthcare industry? Well, unfortunately, there’s no simple step-by-step guide to investing. All we can manage is giving you a few helpful hints to get your gears turning.
First, you’ll want to consult with a business adviser, especially if you’re new to the whole investment thing. Contact the Small Business Development Corporation or work with a private investment adviser in your local area. The point is to find someone you trust. Investing can be quite a doozy, but having the support you’ll need goes a long way.
Another idea is to invest in healthcare through a franchise. Franchising allows you to take on a solid investment without so much risk. The systems and protocols are already set up for you which means you’re not starting a business from scratch.
You’ll also be working with a strong brand with a good reputation. From there, you can put your own spin on certain management decisions and, of course, you’ll receive a huge return on your investment.
Healthcare franchises are popping up all over Australia. From GP franchises to a franchise for specialties like physiotherapy and Pilates, it’s a fantastic way to branch into the healthcare industry and make sure you’re taking on a smart investment in healthcare.
Still, we’d never tell you how to run your investment business and no matter how you decide to invest, we’d say healthcare is a smart choice. This fast-growing industry shows a lot of promise from many different angles. And while there are various ways to get started, it won’t be long until you’re in on the action.
Contact us today to learn more about franchise opportunities at Physio Inq! We’d love to help get you off on the right foot in healthcare investing. Make an enquiry today!
The information provided on this blog is intended for educational and informational purposes only. It is not intended to be a substitute for professional advice or treatment. Always seek the advice of a qualified professional with any questions you may have regarding a medical condition. Never disregard professional medical advice or delay in seeking it because of something you have read on this blog.