Within the broader health care sector,ROIC can be declining for health-care facility companies but increasing for health-care equipment companies.

Question

Quizplus · Accepted Answer

Health-care facility companies have had to deal with increasing government regulation, insurance companies, and competition from nonprofit organizations. They also suffer from the higher prices that health-care equipment companies can charge for their patented equipment. The patents are the source of the high ROIC of the equipment companies.

Within the Broader Health Care Sector,ROIC Can Be Declining for Health-Care