Healthcare is one of the largest and fastest growing segments of the gross domestic product ("GDP"). Total U.S. healthcare spending was $1.9 trillion in 2004, 16% of GDP, and is expected to grow to $3.6 trillion by 2014 or 18.7% of the GDP. Moreover, national healthcare spending per capita has grown from $191 in 1964 to $6,697 in 2005.

There are several key trends governing the healthcare industry:

• Demographics  of  the U.S.  population  indicate  increasing  expenditures on healthcare services as the "baby boomer" segment ages.
• Healthcare inflation continues to increase at a rate significantly faster than general inflation.
• Co-payments and deductibles comprise an increasing portion of healthcare spending as individual responsibility for healthcare costs is increasing.
• Medicare spending for patient care and drug benefits is expected to increase under the new plan.
• The number of uninsured people continues to increase.
  

Moreover, in all segments of healthcare services, costs continue to rise with expenditures making it increasingly difficult for providers to operate profitably. Coupled with slowing reimbursements from third-party payers, providers will continue to face working capital challenges. There has been a proliferation in service and capital providers to the healthcare industry, many of which are focused on improving information flow, revenue cycle management and payments. Investors remain highly interested in this industry and seek profitable opportunities to invest both directly and indirectly in the healthcare services industry.