The outlook for health care services, including home health services, is strong, according to an S&P forecast published this week.
“Our fundamental outlook for the health care services sub-industry for the next 12 months is positive,” writes Jeffrey Loo of S&P. “We think most services, including home health care, rehabilitation services, clinical laboratory services and dialysis, will continue to benefit from favorable demographics. Partly offsetting has been increased pressure to reduce government spending, raising the possibility of Medicare reimbursement rate cuts within the sub-industry.”
S&P identified some areas of health care services, such as clinical labs and dialysis as being strong performance groups over the next 12 months, with Medicare reimbursement issues potentially putting pressure on sales.
Compared with the S&P 1500 Composite index, which saw a 7.7% increase year to date, S&P’s Health Care Services Index rose 19.9% over the same time period.
Written by Elizabeth Ecker