John Hailer, Natixis’s chief executive in the Americas, discusses what’s happening in the industry. The healthcare industry is one of the more complex landscapes at the moment. It’s a complicated and expensive business to be involved with. Still, it’s also a sector that will grow exponentially as new technologies develop and medical illnesses become better understood. That doesn’t mean that the industry will continue to be profitable. The current market conditions are difficult for everybody. John Hailer, head of the Americas division of European bank Natixis, is undoubtedly aware of that. He is concerned about the industry’s financial situation, which is worse than he thought it would be. The banks have had to make a lot of sacrifices to survive, and they are now more financially exposed than they were six months ago when they were forced to slash their investment portfolios in half. But he believes there will be no widespread collapse of banks in Europe or America because there are enough alternatives for wealthy individuals who want to invest a more significant portion of their capital in the healthcare sector.
John Hailer observes that the financial crisis has affected every type of business, particularly those which depend on external funding. The health care sector is one of those, says John. Banks have become much more cautious about financing operations that do not produce cash flow early on after the initial investment, and healthcare does not fit that bill’s criteria for profitability. That has caused a lot of enterprises in the industry to be forced to downsize considerably, which means job losses in the healthcare sector. That’s a situation we need to keep an eye on because we cannot afford to have unemployed people who will eventually develop illnesses like cancer and other malignant conditions if they are stressed and cannot receive proper health care treatment.
Original source to learn more: https://www.wbur.org/inside/staff/john-hailer