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An overview on the cycle of operations of health care industry in the United States is presented.

Various methods to analyze the financial performance, administrative management and profit margins of a health care company are presented.

An overview on the key operations like health care spending, price policies and managed healthcare costs in the United States health care industry is presented.

The financial performance of managed health care sector in the United States in 2006 is presented. Various trends in pricing and medical costs are also analyzed.

Methods are suggested for analyzing the performance of a health care services company. Various qualitative issues concerned with the evaluation of financial statements of a health care company are also suggested.

An overview on the financial performance, along with the impact of heath care spending and growth of health care industry in United States is presented.

The cycle of operations of health care industry is described. An overview of various health care plans, services of health maintenance organizations and earnings of the industry is presented.

The current environment and industry profile of the managed care healthcare industry as of Sep 26, 2002 is given. Industry references, a glossary, and a comparative company analysis are also provided.

The companies which comprise the medical supplies industry have grown and diversified in the 1990s mainly through acquisitions and this trend to consolidation is expected to continue in 1999 and the year 2000. Stock valuations for the industry, however, have decreased in 1999 and there are concerns about the effect of rising interest rates on stock prices, as well. These stocks are expected to perform with the market in 1999 and the year 2000, and investors need to be selective in their options.

Recent price increases for beer in 1999 are expected to benefit domestic brewers in the US along with expected volume increases compared to 1998. Consumption for distillers remains flat, but future earnings can be forecast in foreign markets, and wine makers are expected to have revenue gains in the future, as well. This industry is forecast to underperform the market in 1999 and the year 2000, but some stocks have good price appreciation potential for the next three to five years.

Cost control with the aim of income and earnings growth has become the major management trend in the food industry in the late 1990s after several years of overseas expansion, mergers, and acquisitions. The small- and medium-sized consolidators have been the best performers in the industry as expansion is no longer the best method for growth among the larger companies. These stocks are not timely in 1999 and investors have few selections for stock price growth.

Economic conditions have been good for the computer and computer peripherals industry in the first six months of 1999, but a slowdown which could continue through early 2000 is possible. Sales could be slow for the first half of the year 2000 due to Y2K concerns, but then could rise with good sales for the next three to five years. There are many timely stocks in this industry that are of interest to investors for 1999 and 2000 and through the years 2002-2004.

Firmer prices, reduced levels of inventory, and improved product demand have helped electronics industry stocks to increase their prices in the 2nd qtr of 1999. Cost cutting in the industry, expansion of overseas markets, such as Latin America and Asia, and increased content of electrical components are likely to help the industry recover further, also. Investors will find several timely stocks in this industry, many of which have good growth prospects over the long term.

Stocks in the electric equipment industry have increased in timeliness in the first half of 1999 after a long period of underperforming the market. The industry is increasing its consolidation, even though most mergers and joint ventures are modest, and global markets have become important, as well, especially Southeast Asia, Latin America, and Eastern Europe. Investors need to concentrate on the most timely stocks in this industry that have strong earnings and good markets.

Prices and earnings in the medical supplies industry have been under pressure in the late 1990s from government insurance agencies, such as Medicare, and competition within the industry. Reaearch and development, technological innovation, and industry consolidation are some of the methods by which medical supply companies have attempted to cope with the situation. Investors need to consider safety and timeliness factors when evaluating these stocks for selection.

Growth prospects in the food industry are limited due to market saturation and the maturity of the industry, but some new trends in US food consumption patterns may help some companies enlarge their markets. One of the new areas of growth is in the low cholesterol, low-fat/non-fat food segment and health foods are now being sold in supermarkets. Several stocks in this industry will outperform the market in 1999, but most are conservative investments.

Brewers earnings are expected to increase in 1998 after the price increases initiated by Anheuser-Busch in the 3rd qtr. The distiller's market has also matured in Japan, Europe, and the US, and the industry is seeking a greater emerging market share in other areas. The move to upscale products is recent consumer trend, also, that many industry observers have noted. These stocks are attractive investments over the next three to five years.

The computer and peripherals industry has had a poor year in 1998, but the prospects for the industry over the long term seem to be good. The economy for both the US and the emerging markets should improve over the next three to five years, and sales should improve beginning in 1999. These stocks are well ranked for 1998 and 1999 and many have price appreciation potential for the next three to five years.

Stocks of the electrical equipment industry fell about 25% during the 3rd qtr of 1998, compared to an average drop of 14% of the market as a whole for that period, owing to global uncertainty and other problems. Industry earnings have improved, however, due to better margins and top-line growth. Investors should consider these stocks only on an individual basis as the industry is below-average in timeliness for late 1998.

Many firms in the electrical equipment industry continue to post strong financial performance despite the cyclical nature of this sector. The Asian economic crisis is the latest challenge to the industry, but many companies are weathering the crisis reasonably well. Overall, the industry is ranked low for timeliness, but some stocks are good picks for portfolio diversification.

The US government is planning to make some major changes for managed care and Medicare recipients beginning in Nov 1998 and this will have an effect on provider cost controls. Medical supply manufacturers, especially the orthopedic sector, will be affected by this, but new products will aid sales and margins in 1998 and through the years 2001-2003. Investors, however, should select the most timely stocks for commitment.

New stock market highs, lower inflation, and other influences have allowed consumers to spend more on recreational goods and services in the 1990s, and this has had a beneficial effect on the industry. Speedway Motorsports Inc, Royal Caribbean Cruises Ltd, Carnival Corp, and Harley Davidson Inc have all been affected by this. Investors need to select timely stocks in 1998, as the industry's potential for appreciation limited.

Diabetes has become more prevalent in the US, and the world at large, with the ageing of the US population and other factors. The market for diabetes and glucose test equipment, as well as insulin therapy needs, has become more important to medical supplies companies, such as Johnson and Johnson and Abbot Labs. Cost controls and new products have combined for good 1998 profit prospects for the industry, and investors should seek timely stocks.

High consumer confidence and increasing personal income are among the good business factors which are expected to help the recreation industry maintain its prosperity in 1998. In addition, effective cruise line sales promotion and technology are also favorably supporting expansion in this sector of the industry. Most of the shares in the recreation industry are ranked above average or better for investors and are expected to perform well.

Many companies in the brewing industry have been pinched by competitive pricing although overall industry volume in consumption has risen 4% since Sep 1997. Some markets for distillers, such as Japan, Western Europe, and North America are also facing flat or lower consumption, but several wine producers have expanded margins due to a good 1997 crop. The industry has several good stocks, although it is expected to lag the market in 1998.

The larger food processing companies in the US have started seeking emerging overseas markets due to the market saturation at home, and many have become diverse in both geographic location and sales. The US dollar's movement in relation to other currencies has also had a major impact on the industry's foreign operations. There are very few timely stocks in the food processing industry, but investors may find some individual companies attractive.

There is little competition or product overlap in the electrical equipment industry, and there is broad diversity and multiple product lines for most companies, which makes stock selection difficult. Acquisitions and spin offs have been common trends within the industry during the mid-1990s, as well. Investors should concentrate on more timely stocks, since the electrical equipment industry is in the lowest quartile of investment timeliness.

The US economy is expected to have an average growth rate of 2% to 3% in the late 1990s and the early years of the 21st Century after slowing in the last half of 1997. Spending on durable goods, such as computers and peripherals, is expected to reach 10% in 1997 and average 6% to 8% through the years 2000 to 2002, making these growth industries. Many stocks in these industries are forecast to outperform the market in 1997-1998 and through 2000-2002.

Increased demand by business and consumers for both applications and products have given some companies in the electronics industry renewed strength for earnings and long-term growth. Foreign sales are also becoming important as demand for electronic components is growing in developing areas, and expense control is also benefitting many companies. There are attractive stocks in this industry for investors, as its timeliness rating has increased.

Consumer reaction to the February, 1997 International Toy Fair, gave strong indications that investor interest in the toy industry and toy industry economic progress in 1997 and coming years will depend largely on the performance of licensed products. No major toy industry stocks appear to be able to outrank the market, but Mattel Inc. stocks have the potential for 3-5 year appreciation.

The market for the alcoholic beverage industry is competitive both abroad and in the US. However, profits for brewers are being maintained by positive pricing, and the profit margins for distillers are rising. Revenue and volume gained for several wineries in the 1990s with increased demand, and many distillers and brewers will see gains by the year 2000. Individual stocks are good investments, although the industry will underperform the market.

The medical supplies industry as a whole offers investors average timeliness, but stocks in niche markets such as makers of computerized cardio-vascular technology are likely to rise as usage increases. These new procedures offer minimally invasive diagnosis and treatment of heart ailments. Hospital demand for medical supplies is expected to grow at a slower rate, as a larger share of Medicare patients move into managed care.

Almost all recreation industry company stocks are expected to be outstanding investment opportunities for 1997 as they have high ratings for timeliness, risk, earnings growth and a variety of options. Recreation industry securities performed extremely well in 1996, there are job openings throughout the industry, they reported consistently strong earnings and consumers enjoy and support the products: all factors supportive of their strength and longevity.

Continued use of growth opportunities in both domestic and foreign markets have permitted the food processing industry to retain its profitability despite the rising competition from private label foods. Expansion of global trade, new flavors and variations of food favorites and numerous mergers and acquisitions establish food processing securities as good long-term investments for conservative investors.

Computer industry and computer peripherals industry securities have all the appearances of being a good investment, not only for 1996 but for the next 3 to 5 years, but investors must be wary that volatile prices can affect corporate earnings and that much of both industries' success will be based on economic conditions throughout the world. If the international economies continue to grow, a drop in the industries prices could easily be offset by increased demand and sales that would increase profits despite price cuts.

A number of electronics industry companies offer good prospects for serious investors despite a recent tapering off from the industry's rapid growth and a drop to Below Average in the industry's Timeliness ranking. Long term investments are expected to be good but this is also based on world economic improvements since industry growth in sharply dependent on international economic growth and development.

It is difficult to offer investment advice for the electrical equipment industry as an entity because the diverse type of products produced is reflective of the mixed economic valuations for the diverse companies involved. During 1996 some companies performed at better than record highs, especially larger, quality, diversified companies. Investors might look for companies with high Safety ratings for the best yielding investments.

The medical supplies industry has always depended upon technological advancements but it is necessary for the benefits of new medical instruments to be worth more than the costs. The cyclical nature of the industry does not preclude that there are stocks that will interest investors. It is necessary to study their value and it may not be wise to hold on to them until the year 2000.

Results in 1995 for the 14 companies which comprise the recreation industry were only mediocre compared to 1994. However, this can be misleading, as several companies such as Walt Disney Co are now part of the entertainment industry. There was a slowdown for equipment makers in 1995, but amusement provider profits may rise 25% in 1996. Several recreation stocks are good investments for 1999-2001, but most are ranked neutral for timeliness.

Demand for toys is expected to be spread over a wide variety of product lines in 1996, as there are no 'blockbuster' toys as there have been in recent years. Toys which are tied to TV shows and hit movies tend to be the best sellers for toy makers such as Hasbro Inc and Mattel Inc. Multimedia PCs, CD-ROMs, and interactive software are also important. These seasonal stocks are neutral for timeliness until 3rd qtr 1996 results are in.

The alcoholic beverage industry reported respectable earnings in 2d qtr 1996, but consumption is declining in the US, Europe and Japan. Exports to developing countries are rising as demand grows by about 5% a year. The stocks of distillers and large brewing companies such as Anheuser-Busch Cos. should perform well over the five-year period up to 2001. Earnings for 1996-1997 are not expected to rise significantly.

The alcoholic beverages industry, while generally profitable, has experienced small growth as an entity and while a few companies have shown considerable growth in sales and profits, many others have shown flat or declining growth. The industry is expected to underperform in 1996 although some companies may perform well as they push for growth in the international market. Investors should consider individual companies rather than rely on the industry as a whole.

Electronics industry stocks are not as timely as they were in 1995 and their markets no are longer growing. Cost control, especially for research and development, is one obstacle. Lo-tech stocks should perform well in 1996, however, since they rely less on research. Technological leadership will be the most important factor for stock price appreciation for the next three to five years, with hi-tech stocks in the lead.

There was further consolidation in the medical supplies industry in 1995, especially in the interventional cardiology field. Revenues and earnings for the industry have also been strong in 1995. There will be increased demand for medical supplies and services in 1996 with improved living standards and the aging population worldwide, which will benefit profit margins. There are a wide variety of timely stocks in this industry for investor selection.

The shift in consumer spending toward CD-ROMs, PCs, and entertainment software is not hurting the toy industry, as did video games. CD-ROMs are being produced by toymakers Mattel and Hasbro, as well. Sales trends for toys will become more stable as product categories become more diverse, and there will also be a market share for the usual toy products. Mattel is the best toy industry stock for investors in 1995.

Good revenues and earnings for the recreation industry are expected in 1996, but extended consumer credit could be a problem. Cruise line operators are doing well and expanding their fleets. Electronic game manufacturers are in a transition period, and recreational equipment makers are having impressive growth. These stocks are not among the most timely, but several issues have good three-to-five year appreciation potential.

Private-label brands in supermarkets are increasing their market share, due to profitability for stores and greater budget-mindedness by consumers. Food processors are then contending with private-label competition and several have lowered prices. Others also have a stake in the private-label business. Most of these stocks are defensive and not expected to outperform the market. These stocks are suitable mainly for conservative investors.

The alcoholic beverages industry is changing through retrenchment and diversification. Anheuser-Busch is divesting Eagle Snacks and Campbell Taggart, while Seagram has purchased an 80% interest in MCA Inc. Beer industry shipments declined .3% in the first nine months of 1995, but the market is improving and spirits will have a healthy 1996. The industry will underperform the market in 1996, but has potential for the future.

The computer and peripherals industry is benefitting from favorable US economic growth, with 8%-9% durable goods expenditure increases expected. European and Asian economies are mixed now, however. Demand in the small business and home markets for PCs is strong, and the new markets in Eastern Europe, Asia, and elsewhere are opening. Many of these stocks are expected to outperform the market in the next three to five years.

New applications for electronic systems and increased demand are the two basic trends benefitting the electronics industry in 1995. Electronic equipment for automobiles is an example of where these trends are merging. There may be some consolidation of distributors in the future, but hostile takeovers are not likely. These stocks have a favorable timeliness rating, and AMP Inc is an excellent pick for yield and earnings.