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15 Worst Performing Healthcare Stocks in 2023

Hamna Asim
17 min read

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In this article, we discuss 15 worst performing healthcare stocks in 2023. If you want to skip our detailed discussion about the healthcare industry, head directly to 5 Worst Performing Healthcare Stocks in 2023.

In 2021, healthcare spending in the United States accounted for over 18.3% of its GDP and the national healthcare expenditure came in at $12,914 per person. According to Deloitte, the United States' spending in healthcare can rise to $12 trillion by 2040. That being said, the past two years have seen a record high performance for pharmaceuticals and biotechnology firms in the region, propelled mainly by the COVID-19 pandemic.

As per BlackRock, while revenues from COVID-19 are going to decline over the next few years, companies are focused on creating mRNA-based technologies to treat cancer, Alzheimer’s, and Parkinson’s. As the industry continues to normalize post pandemic, it is gripped by numerous other challenges. One major challenge in the United States has been the shortage of medical staff and health professionals. According to BlackRock’s research, 1 in 5 healthcare workers have quit their jobs since 2020, out of which 2 in 3 have left the healthcare industry entirely. Making things worse is the increasing cost for healthcare. This is expected to increase insurance premiums and decrease investment and slow down innovation in the industry. 

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Technology is taking over the healthcare sector and is the newest trend to watch. As the world had to adjust to life during the pandemic, the industry experienced a major increase in telehealth. Patients were able to get in touch with their providers over the phone, through text messages, calls, and online meetings. This is expected to continue in the future, with over 60 million users living in rural areas. LBMC, a professional services CPA firm, estimated that the worldwide market for telehealth was worth $48.3 billion in 2022 and is forecasted to reach $57.1 billion this year. Furthermore, there is an increasing need for remote monitoring devices and gadgets, such as fitness bands. Similarly, there is another opportunity in machine learning and artificial intelligence, as the need for maintaining personalized treatments grows, in line with staff shortages. This also highlights the need for cloud-based workforce and data management solutions. It was reported that the market for big data analytics in the healthcare sector is valued at $32.9 billion in 2021. This market is forecasted to grow at a CAGR of 13.85%, reaching $105.73 billion by 2030. 

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