My uncle always makes fun of hospitals/healthcare saying they’re mostly in the dark ages with technology and it is the least advanced/productive industry. It’s making me think I should move into engineering/tech like him or another more productive area of the economy. It also seems to pay mediocre compared to other fields.

Valid points?

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Your uncle is wrong. What on Earth? How can you work at Huron and not have a viewpoint on this to refute his claim ? Healthcare in every vertical is advancing like crazy. Did he not see how fast the COVID treatments were developed? Analytics, machine learning in molecular research, customer-focused care, is all advancing. Electronic health records companies like Epic, PBMs like UHC, and research scientists studying the actual molecules all have a massive amount of potential to make our lives better.

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Hmm- what’s your source on that? It is correct, that technically the data in recent years have slightly lower ages than the also very recent pinnacle. But the TREND is increasing aging population.

The rich (countries) are aging, the poor are not. People over 60 are becoming the world’s fastest growing cohort. Chronically young populations like parts of Africa and Asia, Somalia, Afghanistan, Pakistan, Iraq, Yemen also are that way due to other factors like instability and proneness to violence.

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Depends what you mean by healthcare. Pharma pays well.

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Your uncle is a very unintelligent man

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Step 1; Define terms like "healthcare" and "productive".

If you mean american insurers as "healthcare", where the goal is extracting dollar value and investing returns, then yes, that is not particularly value-add, and it isn't productive, but it is profitable. Healthcare providers do work that is often meaningful (something not obviously mentioned by your uncle), but maybe less profitable, and productivity is a dice roll. For example, if life expectancy is 80 years, and 4 man-hours of surgery saves the life of a 70 year old, is the "productivity" of the surgery 10 years of life? Is that bad/low vs spending the same 4 hours of surgery on a 20 year old with 60 years of life to save?

Does productivity mean people served per hour of labor? Tech is more productive in that Bing can serve ads and results for a million searchers in 60 seconds, but a doctor needs 3 minutes to measure blood pressure of 1 person. Technically this is a measure of productivity, despite being apples vs oranges.

Overall, my take is that your uncle may not be wrong but he may not be using the same definitions and metrics in the same way as you or others.

Btw, advanced is not the same as productive. And pay (plus WLB and other things) in either field depends on role, which is another can of worms.

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Well thought out response. I appreciate that.

Yeah. Certain aspects and sectors of healthcare are bleeding-edge, but you are 100% right. Much of it is pure rent-seeking and bloat.

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Who cares what your uncle thinks. Is he talking about healthcare providers, insurers, life sciences, a different area, or just generalizing across all of the above? If the last option, my perspective is that he's likely speaking out of ignorance rather than having an informed opinion.

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Several vaccines for a worldwide pandemic just got created in a matter of months. What’s this guy even talking about?

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@BAH, isn't that the point of every for-profit company? 🤔 Telecom is one of the worst offenders where they have agreed-upon regional restrictions to be the only ISP for customers, thus forcing prices due to lack alternatives.

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Sounds like plenty of opportunities for IT modernization. If anything, this should push you further into tech. Low hanging fruit.

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It depends. There is still hospital equipment that runs on XP. So yeah.

Healthcare is a very complex space with many players and often costs, benefits and choice go to different parties. So there are going to be issues.

Most industries are kluges and I wonder why most things even work. I think it’s only because we have armies of people who are dedicated to fixing things and we’ve been very lucky. Luck has run out once or twice but we’ve recovered so far.

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I get what your uncle is saying, but my takeaway is different.

Healthcare (on average) is probably 5-10 years behind tech, financial services in using data/analytics to manage operations (despite a tonne of innovation in medical R&D).

While healthcare has historically been behind, organizations are looking to pick up pace while still having a lack of talent compared to, say tech. Healthcare seems like the better opportunity for me personally.

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Shared patient health records were going to be solved 30 years ago. The technology is straightforward. Providers didn't like it then, and don't like it now. Retesting is a lot more profitable than sharing a test record. Keeping physicians in the system leads to more profit.

It is very hard to build a business case for sharing until the regulations get much stronger or payers demand it.

Lots of hugely productive pharma and Bio advances. But if you have ever tried to sell to a payer or a hospital you know equipment that makes a profit is easy, productivity tools that are not reimbursed are next to impossible.

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I think the opinion is valid. He works at Microsoft, so not an idiot. I’ve talked to numerous other people who agree - outside biotech, vaccines, not very productive. Mostly inflated costs, paper pushing, pointless admin & rent seeking.

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