Known as the “Oracle of Omaha,” the 2nd wealthiest American credits his success to his ability to foresee upcoming investment trends. At an annual Berkshire Hathaway shareholder’s meeting in May 2017, an event known as “Woodstock for Investors,” chairman and Chief Executive, Buffett, spoke about how rising healthcare costs - not tax codes - are “crippling our business around the world.”
Buffet is identifying healthcare costs, not corporate taxes, as the top barrier to growth for American businesses.
It’s no coincidence that one of the most respected, followed, sought after investors in the world is beginning to verbalize what FYZICAL members already know…
Americans both want, and need preventative care.
To learn more, let’s take a look into what ideologist, and economist Warren Buffett sees in physical therapy that most overlook. We’ll also look at why recognizing the economy’s need for preventative healthcare is a massive step for value-based care of the future.
While corporate tax laws have been more lenient in past years, healthcare is becoming more burdensome. According to forbes.com, Buffett said, “If you go back to 1960 or thereabouts, corporate taxes were about 4% of GDP … Now they’re about 2%. Healthcare was 5% of GDP, and now, it’s about 17% of GDP.”
Prevention lowers the long term cost of health care, and one of the reasons business leaders are urged to look towards health care costs rather than corporate tax laws.
Many private practice owners may feel like, ‘the last of the dinosaurs’ competing against large corporations and hospital systems. In actuality, most large healthcare systems are currently using a business model that is historically “fee-for service” in contrast to the “fee-for outcome” payment model demanded by healthcare reform.
The reality is, the trend through which hospitals are raising healthcare costs through monopolization is not a sustainable business model.
The brightest minds are beginning to see, the cost of healthcare is pulling down on the economy. Those who set themselves apart as prevention focused in the healthcare world will endure the impending changes.
Who better to capitalize on patient outcomes than the independent private practice owner? With the right business model (FYZICAL), independent healthcare providers are beginning to see they are not the victims of the market, but instead, the solution to a growing epidemic.