Sickness Industry Reels from the Lack of Flu

The non-event of a flu season in 2008 shows just how sensitive health-related corporate America is tied to the profits of illness. A sad pallor set in over investor meetings as hospital chains such as Lifepoint and Health Management Associates reported very poor patient volume and low profits, especially in their cash cow businesses (children and the elderly). The reason for this stellar non-performance: virtually no flu season.

Others suffered miserably as well. Procter & Gamble can’t sell Vicks and Kimberly-Clark said Kleenex sales were down 12% over last year – boo hoo hoo. Even car insurance providers are taking it in the bottom line. The Wall Street Journal reports that Allstate CEO Tom Wilson told investors last month: “People get flu, they don’t drive, and you’d be surprised how much money we make when people don’t drive, and so they don’t get in accidents.”

Flu shots are little more than a profit-motivated scam in the first place, with rather devastating downside risks. Their sales are based on fear mongering and when no flu is in sight it is hard to drum up business (there will be plenty of stockpiled worthless flu vaccine this season).

It appears the sickness industry and related businesses are suffering a bad case of financial flu. Only when profits are tied to people being well will we have a viable health care system in America.