Sub-Sectors in the Health Care Industry

Sub-Sectors in the Health Care Industry


Pharma/Biotech – The pharmaceutical and biotechnology industries produce drugs, vaccines, and other products that help people and animals live healthier lives, recover from injuries, and treat illnesses.  A few examples of companies in this area include Amgen, Genentech, Lilly, Pfizer, and Johnson & Johnson. 

Health Tech – Health tech refers to IT tools or software designed to boost hospital and administrative productivity, give new insights into medicines and treatments, or improve the overall quality of care provided.  This covers data and analytics, AI and personalized medicine, and real-world evidence. Health tech can also refer to telehealth and telemedicine or smart devices and wearables that aid a patient or consumer in their health or health care. Many traditional companies recruiting at Fuqua have digital health or health tech divisions.  Health tech companies include not only start-ups, but also large companies such as Teladoc and Epic.

Medical Device – The medical device industry makes products— ranging from surgical gloves to artificial joints to imaging equipment—and plays a crucial role in developing new medical technologies that can improve the ability to diagnose and treat illness.  Medical devices can also include diagnostics like test kits or lab reagents used for testing. Examples of companies in the medical device industry are Medtronic, Intuitive Surgical, and Johnson & Johnson.

Provider – The term provider may refer to anyone who administers a health care service, including doctors, dentists, physical therapists, and nurses, etc.  Additionally, this sub-sector encompasses not only the professionals engaged in care, but also the setting in which the care is provided.  This may be a hospital, clinic, or a long-term care facility like a nursing home. Examples of companies in the provider space are HCA, Tenet Healthcare, and the Duke University Health System.

Payer –The payer sub-sector within health care refers to health insurance companies or government entities that pay for health services and care, focusing on processing patient eligibility, enrollment, claims, and reimbursement. This sector looks at data and closely works with issues in population health.  Some companies in the payer sub-sector are Optum, United Health Group, Cigna, and Humana.

Health Consulting – Consultants share expertise, give advice, and guide health care organizations to make business decisions that promote growth and benefit their customers and patients. Consulting in health care spans the breadth of the sector, including hospital and health systems, to pharmaceutical companies, or medical device. Some consulting firms are directly in the health care industry such as ZS Associates and Triangle Insights.  Other firms have health care verticals within them such as Deloitte, McKinsey, and BCG.

Health Finance – Careers in health finance can be in corporate finance at a health care company or in a health care group at an investment bank.  Corporate finance is the division that manages funding sources, capital structuring, and investment decisions.  Roles in corporate finance are across all sub-sectors within health care. Health care investment bankers help companies across all sub-sectors raise capital by issuing stock or borrowing money. They also act as advisers and go-betweens on mergers and acquisitions. Large investment banks including Bank of America, Barclays, and Goldman Sachs have health care divisions.

Health Care Innovation & Entrepreneurship – Innovation and Entrepreneurship careers span the breadth of the other sub-sectors within health care.  In an industry that is constantly making new discoveries, adopting new technologies, and navigating policy changes, there are endless opportunities for I&E.  Careers can include working with start-up companies in the sector, starting your own company, or working for an accelerator or incubator, sometimes within a larger organization.