What's happened
Recent reports highlight significant shifts in the U.S. healthcare landscape, with a growing emphasis on women's health and the profitability of health insurers through non-core services. Major players like Hims & Hers and Cigna are adapting to these changes amid ongoing challenges for smaller hospitals.
Why it matters
What the papers say
According to Axios, Hims & Hers is shifting its focus to women's health, with CEO Andrew Dudum stating, "there's a really huge opportunity" in this area. Meanwhile, Cigna's recent earnings report highlighted a 25% revenue increase driven by its Evernorth Health Services, indicating a trend among insurers to diversify beyond traditional health insurance. Tina Reed from Axios notes that while larger health systems are seeing profit growth, smaller hospitals are facing significant financial challenges, with Mike Eaton from Navvis emphasizing that many have "a margin for error... basically zero." This contrast illustrates the widening gap in healthcare access and quality between large and small providers.
How we got here
The U.S. healthcare system has historically prioritized male-centric services, but recent developments, including the overturn of Roe v. Wade, have prompted a renewed focus on women's health. Concurrently, larger health systems are thriving while smaller facilities struggle financially.
Common question
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Why are healthcare profits surging in 2024?
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