HSIC · 10-Q · 2026Q2 · Full report

Healthcare Cost Containment

HENRY SCHEIN INC · 2026-08-04 · Importance 17 · Surprise 24

The healthcare industry is increasingly focused on cost containment, which management believes benefits distributors offering broad product and service assortments at low prices. Cost-containment pressures have accelerated the growth of DSOs, GPOs, HMOs, group practices and other managed-care and collective-buying groups. Henry Schein believes these dynamics may increase demand for technology and Artificial Intelligence solutions that improve practice-management efficiency. The company also expects continued consolidation among healthcare providers and intends to pursue opportunities that expand its role as a products and services provider.

Key facts

• The Centers for Medicare and Medicaid Services published that total national health care spending reached approximately $5.3 trillion in 2024 (18.0% of GDP) and is projected to reach approximately $9.0 trillion by 2034 (20.6% of projected GDP). source