Tough Times Ahead for the Healthcare Sector?

According to a report published recently in Health Affairs, national health care spending grew at 6.1% in 2007 — its lowest rate of growth since 1998 — mainly as a consequence of slower spending on prescription drugs.

What’s more, IMS Health, a leading provider of market intelligence to the pharmaceutical and healthcare industries, reports that it has cut its estimate for growth of U.S. pharma sales to two percent or less this year … a significant decline from earlier forecasts of four to five percent.

The main causes of this deceleration in growth: fewer blockbusters, more competition from generics and consumers on a tighter budget.

But there’s no reason to throw a pity party for pharmaceutical and healthcare companies just yet. According to an article by Robert Pear in The New York Times, “In recessions, when the economy contracts, health spending usually continues to increase. “ Therefore, it’s likely that healthcare expenditures will increase their share of the nation’s GED during the tough economic times that lie ahead.

Is Nothing Private in Today’s High-Tech Environment? Apparently Not.

Crisis management, public relations, investor relations, financial communications and technology consultants, like those in our New York City PR firm, often talk about the ways in which the Internet has opened a window on private lives. There was a perfect example of this phenomenon this week on the Apple website, where Steve Jobs addressed a new flurry of rumors about his health.

In his open letter, Jobs wrote: “… my doctors think they have found the cause — a hormone imbalance that has been ‘robbing’ me of the proteins my body needs to be healthy. … The remedy for this nutritional problem is relatively simple and straightforward, and I’ve already begun treatment. … I will continue as Apple’s CEO during my recovery.”

In 2004, the media breathlessly followed Jobs’ successful battle against pancreatic cancer. In June 2008, his gaunt appearance gave rise to new speculation about his health. More questions were raised when Apple announced a few weeks ago that, for the first time ever, Jobs wasn’t planning to deliver the keynote address at Macworld.

While there are clear standards for disclosure of material financial information, disclosure concerning matters of health has typically been left to the discretion of the company’s board of directors. Not any more, apparently. According to Henry Blodget, co-founder, CEO and editor-in-chief of the Silicon Alley Insider, “Steve's health is NOT just a ‘private matter.’” He adds, “Steve Jobs is arguably Apple's single most valuable asset. If he's seriously ill, shareholders have every right to know this.”

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