Politically, much remains uncertain with healthcare. Despite the Trump administration vowing to repeal the Affordable Care Act once in office, the legislation remains in place, although parts of it have been reshaped through regulatory, budgetary and legal actions. Multiple politicians running for president in 2020 have pushed for a total overhaul of the current healthcare system, suggesting a single-payer or Medicare-for-all model. Much of the country remains divided over how best to handle it.

“You have to go day by day when it comes to the healthcare market,” says Paula Gossett, senior promotional consultant at Top 40 distributor Geiger (asi/202900). “You never know what legislation is going to do. You need to be aware of what’s going on that can affect your clients and then be proactive in helping them solve any problems.”

Five-Year Snapshot: The healthcare market reversed five years of decline and remains the second leading market for promo products revenue.

Economically, however, it’s a different story. Healthcare is the second leading market for promotional products sales, and erased five consecutive years of decline by rebounding over a full percentage point.

One reason is the domino effect of escalating costs: spending was expected to increase by 5.3% in 2018, up from a 4.6% increase in 2017, Reuters reported. This upward trend which reflected the rising prices of medical goods and services, and higher Medicaid costs is forecasted to continue through 2026.

“Being a medical practitioner is extremely expensive these days,” Gossett says. “You have to have continuing education, proper malpractice insurance, accurate medical billing – it’s very demanding to stay in business.”

Top Tip A report last year by the Association of American Medical Colleges stated that the U.S. could see a shortage of up to 120,000 physicians by 2030. Hospitals and health systems need to address their retention of physicians now or get caught flat-footed later.

As a result, Gossett has seen a trend in small and private practices turning to large corporations to handle the back-end operations. Conversely, chains of nursing homes and urgent care centers are gobbling up independent practices rather than building new locations for expansion. Gossett says these transitions provide rebranding opportunities such as new signage, tote bags, uniforms and scrubs. “We’re supporting the original company while changeover is happening, and we’re building a new relationship with the parent company in the process,” Gossett says. “But you have to be patient and learn to work with these new clients the way they want to be worked with.”

Eddie Greenhill, co-owner of Pikeville, KY-based Embroid Me (asi/384000) powered by Top 40 distributor Fully Promoted, has targeted internal operations, offering incentive and employee recognition programs. With such volatility in the market right now, management is all-too willing to keep their workers happy and in place. “Hospitals are doing more to appeal to their staff,” Greenhill says. “We’ve seen a rise in gifts and awards like buttons, pins and apparel.”

If patients are going home with a boatload of pill bottles and forms, this medium gusset nonwoven tote bag (CPP-3407) will come in handy. AP Specialties (asi/30208); apspecialties.com