10 most profitable companies in the health care sector
It's been well established by now that the health care industry makes the world go round. Or if not the world, then at least the United States, where we spend more on health care than any other country, and health care represents an increasingly significant chunk of our GDP. Health care is a trillion dollar business, and it's also driving the U.S. economy, creating jobs, innovations in medical products and services and driving the rise and fall of the stock market. And despite a couple of stumbles related to speculation about Medicare for All or a single-payer system increased scrutiny of drug prices, the industry is on track for another blockbuster year. Related: Health care spending hits record high despite flat rates of utilization Axios has been keeping track of earnings for some 165 companies in the health industry--their revenue, profits and profit margin. The list runs the gamut and includes retail pharmacies such as CVS and Walgreens and virtual providers such Teladoc, not-for-profit companies (many of which have profit margins above 10 percent), drug makers and distributors, medical supply companies, hospital systems, and more. In the first three quarters of the year, these companies have brought in a whopping $2.3 trillion in revenue, and eight of the 10 top companies have brought in more than $100 billion each--but that doesn't mean they'll be the most profitable. In fact, just two companies in the top revenue earners also make the list of top 10 by profit. BUCAHs lead the pack when it comes to revenue, with UnitedHealth, Cigna and Anthem all on the list. When it comes to profits, however, drug companies make up 5 of the top 10, and they're also well represented when it comes to profit margins. Check out the slideshow above to see which 10 companies are on track to be most profitable this year. Read more:
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