The two primary sections of this book are devoted first to the health care industry as a whole and then to the “Individual Data Listings” for THE HEALTH CARE 500. If time permits, you should begin your research in the front chapters of this book. Also, you will find lengthy indexes in Chapter 4 and in the back of the book.

THE HEALTH CARE INDUSTRY

Glossary: A short list of health care terms.

Chapter 1: Major Trends Affecting the Health Care Industry.This chapter presents an encapsulated view of the major trends that are creating rapid changes in the health care industry today.

Chapter 2: Health Care Industry Statistics. This chapter presents in-depth statistics on Medicare, Medicaid, hospitals, pharmaceuticals and more.

Chapter 3: Important Health Care Industry Contacts – Addresses, Telephone Numbers and World Wide Web Sites. This chapter covers contacts for important government agencies, health care organizations and trade groups. Included are numerous important World Wide Web sites.

THE HEALTH CARE 500

Chapter 4: THE HEALTH CARE 500: Who They Are and How They Were Chosen.
The companies compared in this book (the actual count is 506) were carefully selected from the health care industry, largely in the United States. 45 of the firms are based outside the U.S. For a complete description, see THE HEALTH CARE 500 indexes in this chapter.

Individual Data Listings: Look at one of the companies in THE HEALTH CARE 500’s Individual Data Listings. You’ll find the following information fields:

Company Name: The company profiles are in alphabetical order by company name. If you don’t find the company you are seeking, it may be a subsidiary or division of one of the firms covered in this book. Try looking it up in the Index by Subsidiaries, Brand Names and Selected Affiliations in the back of the book.

Ranks:

Industry Group Code: An NAIC code used to group companies within like segments. (See Chapter 4 for a list of codes.)

Ranks Within This Company’s Industry Group: Ranks, within this firm’s segment only, for annual sales and annual profits, with 1 being the highest rank.

Business Activities: A grid arranged into five major industry categories and several sub-categories. A “Y” indicates that the firm operates within the sub-category. A complete Index by Industry is included in the beginning of Chapter 4.

Types of Business: A listing of the primary types of business specialties conducted by the firm.

Brands/Divisions/Affiliations: Major brand names, operating divisions or subsidiaries of the firm, as well as major corporate affiliations—such as another firm that owns a significant portion of the company’s stock. A complete Index by Subsidiaries, Brand Names and Selected Affiliations is in the back of the book.

Contacts: The names and titles up to 27 top officers of the company are listed, including human resources contacts.

Address: The firm’s full headquarters address, the headquarters telephone, plus toll-free and fax numbers where available. Also provided is the World Wide Web site address.

Financials:

Annual Sales (2005 or the latest fiscal year available to the editors, plus up to four previous years): These are stated in thousands of dollars (add three zeros if you want the full number). This figure represents consolidated worldwide sales from all operations. 2005 figures may be estimates or may be for only part of the year—partial year figures are appropriately footnoted.

Annual Profits (2005 or the latest fiscal year available to the editors, plus up to four previous years): These are stated in thousands of dollars (add three zeros if you want the full number). This figure represents consolidated, after-tax net profit from all operations. 2005 figures may be estimates or may be for only part of the year—partial year figures are appropriately footnoted.

Stock Ticker: When available, the unique stock market symbol used to identify this firm’s common stock for trading and tracking purposes is indicated. Where appropriate, this field may contain “private” or “subsidiary” rather than a ticker symbol.

Total Number of Employees: The approximate total number of employees, worldwide, as of the end of 2004 (or the latest data available to the editors).

Apparent Salaries/Benefits: (The following descriptions generally apply to U.S. employers only.) A “Y” in appropriate fields indicates “Yes.”
Due to wide variations in the manner in which corporations report benefits to the U.S. Government’s regulatory bodies, not all plans will have been uncovered or correctly evaluated during our effort to research this data. Also, the availability to employees of such plans will vary according to the qualifications that employees must meet to become eligible. For example, some benefit plans may be available only to salaried workers—others only to employees who work more than 1,000 hours yearly. Benefits that are available to employees of the main or parent company may not be available to employees of the subsidiaries. In addition, employers frequently alter the nature and terms of plans offered.

NOTE: Generally, employees covered by wealth-building benefit plans do not fully own (“vest in”) funds contributed on their behalf by the employer until as many as five years of service with that employer have passed. All pension plans are voluntary—that is, employers are not obligated to offer pensions.

Pension Plan: The firm offers a pension plan to qualified employees. In this case, in order for a “Y” to appear, the editors believe that the employer offers a defined benefit or cash balance pension plan (see discussions below).The type and generosity of these plans vary widely from firm to firm. Caution: Some employers refer to plans as “pension” or “retirement” plans when they are actually 401(k) savings plans that require a contribution by the employee.

ESOP Stock Plan (Employees’ Stock Ownership Plan): This type of plan is in wide use. Typically, the plan borrows money from a bank and uses those funds to purchase a large block of the corporation’s stock. The corporation makes contributions to the plan over a period of time, and the stock purchase loan is eventually paid off. The value of the plan grows significantly as long as the market price of the stock holds up. Qualified employees are allocated a share of the plan based on their length of service and their level of salary. Under federal regulations, participants in ESOPs are allowed to diversify their account holdings in set percentages that rise as the employee ages and gains years of service with the company. In this manner, not all of the employee’s assets are tied up in the employer’s stock.

Savings Plan, 401(k): Under this type of plan, employees make a tax-deferred deposit into an account. In the best plans, the company makes annual matching donations to the employees’ accounts, typically in some proportion to deposits made by the employees themselves. A good plan will match one-half of employee deposits of up to 6% of wages. For example, an employee earning $30,000 yearly might deposit $1,800 (6%) into the plan. The company will match one-half of the employee’s deposit, or $900. The plan grows on a tax-deferred basis, similar to an IRA. A very generous plan will match 100% of employee deposits. However, some plans do not call for the employer to make a matching deposit at all. Other plans call for a matching contribution to be made at the discretion of the firm’s board of directors. Actual terms of these plans vary widely from firm to firm. Generally, these savings plans allow employees to deposit as much as 15% of salary into the plan on a tax-deferred basis. However, the portion that the company uses to calculate its matching deposit is generally limited to a maximum of 6%. Employees should take care to diversify the holdings in their 401(k) accounts, and most people should seek professional guidance or investment management for their accounts.

Stock Purchase Plan: Qualified employees may purchase the company’s common stock at a price below its market value under a specific plan. Typically, the employee is limited to investing a small percentage of wages in this plan. The discount may range from 5 to 15%. Some of these plans allow for deposits to be made through regular monthly payroll deductions. However, new accounting rules for corporations, along with other factors, are leading many companies to curtail these plans—dropping the discount allowed, cutting the maximum yearly stock purchase or otherwise making the plans less generous or appealing.

Profit Sharing: Qualified employees are awarded an annual amount equal to some portion of a company’s profits. In a very generous plan, the pool of money awarded to employees would be 15% of profits. Typically, this money is deposited into a long-term retirement account. Caution: Some employers refer to plans as “profit sharing” when they are actually 401(k) savings plans. True profit sharing plans are rarely offered.

Highest Executive Salary: The highest executive salary paid, typically a 2004 amount (or the latest year available to the editors) and typically paid to the Chief Executive Officer.

Highest Executive Bonus: The apparent bonus, if any, paid to the above person.

Second Highest Executive Salary: The next-highest executive salary paid, typically a 2004 amount (or the latest year available to the editors) and typically paid to the President or Chief Operating Officer.

Second Highest Executive Bonus: The apparent bonus, if any, paid to the above person.

Other Thoughts:

Apparent Women Officers or Directors: It is difficult to obtain this information on an exact basis, and employers generally do not disclose the data in a public way. However, we have indicated what our best efforts reveal to be the apparent number of women who either are in the posts of corporate officers or sit on the board of directors. There is a wide variance from company to company.

Hot Spot for Advancement for Women/ Minorities: A “Y” in appropriate fields indicates “Yes.” These are firms that appear either to have posted a substantial number of women and/or minorities to high posts or that appear to have a good record of going out of their way to recruit, train, promote and retain women or minorities. (See the Index of Hot Spots For Women and Minorities in the back of the book.) This information may change frequently and can be difficult to obtain and verify. Consequently, the reader should use caution and conduct further investigation where appropriate.

Growth Plans/ Special Features: Listed here are observations regarding the firm’s strategy, hiring plans, plans for growth and product development, along with general information regarding a company’s business and prospects.

Locations: A “Y” in the appropriate field indicates “Yes.” Primary locations outside of the headquarters, categorized by regions of the United States and by international locations. A complete index by locations is also in the front of this chapter.

Back to Plunkett's Health Care Industry Almanac