Monday, December 2, 2013

The for-profit healthcare sector is huge!

seekingalpha.com
  • Omega Healthcare Investors owns nursing care facilities for senior citizens. The senior healthcare market exhibits very attractive long-term supply and demand conditions. Higher living standards, less risky jobs and better healthcare have substantially increased live expectancy. The congressional budget office (CBO) issued a report in June 2013 titled 'Rising Demand for Long-Term Services and Supports for Elderly people' which substantiates the information provided in this article. Strong secular trends in the senior nursing care market (that is, longer average life expectancies and larger age cohorts in the 75+ year range) will drive demand for nursing care as well as nursing facilities in the future, particularly after 2030. The share of elderly adults as percent of the US population is expected to increase dramatically over the next decades as indicated by the graph below. Baby boomers are going to be a particular demographic driving nursing care demand going forward.

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