The Medical Services sector has undergone significant changes over the past three years due to the public health crisis. The demand for remote treatment has led to a surge in digital healthcare options, which continue to grow even after the pandemic. According to a recent report, the global healthcare analytics market is expected to exceed $121.1 billion by 2030, driven by the adoption of data and analytics.
Stocks like Elevance Health, Inc. (ELV), Medpace (MEDP), and Doximity (DOCS) are expected to benefit from the evolving healthcare services landscape. However, the pandemic has had a lasting impact on the healthcare workforce, with a significant number of nurses leaving the field. This has raised concerns about potential staffing shortages in the future.
The Zacks Medical Services industry includes various service providers such as pharmacy benefit managers, contract research organizations, and healthcare workforce solution providers. The industry has shifted towards value-based care, leading to an increased reliance on specialized external service providers. The industry plays a crucial role in modern healthcare management.
Three key trends shaping the future of the Medical Services industry include the digital revolution, the revival of the nursing care market, and staffing shortages. The adoption of digital platforms and technologies like AI has transformed the industry, while the need for specialized medical caregiving has increased. Despite challenges, the market is rebounding post-pandemic.
The Zacks Industry Rank for the Medical Services industry is #80, indicating improving prospects. While the industry has outperformed its sector, it lags behind the S&P 500. Investors should consider the industry’s shareholder returns and current valuation before investing in stocks within this sector.