The last time I went to see a doctor, I got a scolding because it had been four years since my last visit.
“You need to have regular checkups,” she told me.
After calming down, my doctor asked for an explanation. “Why don’t you come for your regular checks?”
Truthfully, I told her that I take very good care of my health by eating healthy, staying fit, and keeping informed on new research and issues.
What I didn’t tell her is that I believe the version of health care that’s currently practiced is about to be obsoleted.
By obsoleted, I mean that we’re going to move to a new way of doing things. And the benefit of the new way is so massive that I feel it’s worthwhile to minimize my experience with the old version of health care and wait for the new model to roll in.
However, as an investor who’s seeing this incredible transition happening, you want to get invested in the right stocks now … because the stocks of the companies that are going to benefit from this new era in health care are going to skyrocket.
The New Era of Health Care
The new era of health care is going to be the era of precision medicine.
You see, our current version of health care is incredibly primitive when you compare it to what we can now achieve using what we now understand about health care.
One of the main reasons we can now achieve superior outcomes is due to the fact that we now have incredible amounts of information about each aspect of our health, which are now recorded in electronic health records.
These health records are data that can be parsed and sorted, which then can be used to make diagnoses that are based on information rather than an educated guess by your doctor. The difference is that a diagnosis based on your own actual health history is a significantly better guide to what is wrong with you.
With computers, we can now use your personal records in combination with other people who are experiencing the same conditions … and now we can get an even fuller picture of what is causing your problem.
The second reason why the new era of health care is going to be superior to our current version of health care is because we’ll use more effective drugs in the future.
You see, the drugs we take right now are prescribed to us largely based on the selling ability of the company that makes the drug. In truth, most drugs only benefit something like 20% of the people who take it. That’s an estimate from a doctor at Weil Cornell Medical College.
In the precision medicine model of health care that is unfolding now, drugs will be matched to fit you. Instead of pure selling power of a pharma company driving sales, you’ll only get a drug if it has a chance of working when you take it. And the way that’s going to happen is through combining the information in your health records with genetic data based on your DNA, or genome.
The bottom line of the new era of health care that’s coming is this: Precision medicine is going to deliver the right treatment for the right patient at the right time.
And the reason why it’s going to happen now is because we spent $324.6 billion on prescription drugs in 2015, an increase of 9% over 2014.
An IMS Health study shows that we could spend as much as $640 billion on prescription drugs by 2020.
In general, the United States spent $3.2 trillion on health care in 2015. That was an increase of 5.8% over 2014.
By 2025, an astronomical $5.6 trillion will be spent on health care, according to the Centers for Medicaid & Medicare Services.
We simply can’t afford this. From my experience and research, I’ve found that innovations get adopted and implemented when the costs are too high and the benefits are so great that we feel compelled to dump the old and embrace the new.
Editor, Profits Unlimited