Fisher Investments on Health Care

Foreword ix

Preface xiii

Acknowledgments xvii

Part I Getting Started in Health Care 1

Chapter 1 Health Care Basics 3

Health Care Basics 5

Health Care Characteristics 7

Chapter 2 The US Health Care System 19

Why Does It Cost So Much? 20

Private Versus Public 25

The Regulatory System 30

US Health Care Reform 33

Chapter 3 Brief Overview of Health Care Systems by Major Countries 37

Japan 38

Germany 42

France 45

United Kingdom 48

China 52

Chapter 4 Health Care Sector Drivers 57

Defensive Nature of Health Care 58

Innovation and Patent Expirations 61

Political/Regulatory Developments 63

Part II Next Steps: Health Care Details 67

Chapter 5 Health Care Sector Breakdown 69

Global Industry Classification Standard 70

Global Health Care Benchmarks 71

Pharmaceuticals, Biotechnology & Life Sciences 74

Health Care Equipment & Services Industry Group 90

Health Care Providers & Services 97

Health Care Facilities 98

Health Care Services 99

Managed Health Care 102

Health Care Technology 106

Chapter 6 Challenges in the Health Care Sector 111

Slowing Growth in Mature Markets 112

Legislation and Regulation 115

Responding to Challenges 119

Part III Thinking Like a Portfolio Manager 127

Chapter 7 The Top-Down Method 129

Investing Is a Science 129

The Top-Down Method 132

Top-Down Deconstructed 138

Managing Against a Health Care Benchmark 145

Chapter 8 Security Analysis 151

Make Your Selection 152

A Five-Step Process 153

Important Questions to Ask 161

Chapter 9 Make Your Portfolio “Healthy” 169

Strategy 1: Adding Value at the Industry and Sub-Industry Level 170

Strategy 2: Adding Value at the Security Level 176

Strategy 3: Adding Value in a Health Care Sector Downturn 176

How to Implement Your Strategy 177

Appendix Reference Material 181

Notes 187

About the Authors 193

Index 195