In its latest update, the Altarum Health Sector Economic Indicators, provided some interesting information on health care spending, job growth, and pricing. The data was released yesterday and is accessible here: https://altarum.org/publications/june-2023-health-sector-economic-indicators-briefs
Some key data points from the report are as follows. The data is useful in forecasting, budgeting, and planning, especially in terms of timing for new capital projects/capital budgeting, mergers/acquisitions, and/or business starts.
- In April, healthcare spending grew 5.6% year over year. Healthcare now represents 17.5% of GDP.
- Personal spending on healthcare, excluding government subsidies, grew 8.8% year over year, exceeding the GDP growth rate for three months in a row.
- Spending on nursing home care grew 13.6%, the fastest in April. Physician and clinical services grew the least at 6.4%.
- The Healthcare Price Index grew 3.3% in May, the same as in April. This rate is 1.3% faster than a year ago and tied for the fastest rate of growth since December of 2007.
- Prices for healthcare paid by insurers grew by 3.9% in May, Medicare grew 1.0% year-over-year, and Medicaid, grew 4.9%.
- Nursing home prices grew by 6.9% followed by dental care at 6.6% (the two fastest growing segments). Physician and clinical services prices grew the slowest at .6%.
- Healthcare job growth in May was 52,400 jobs, higher than the quarterly (first) average of 42,000 but about the same as the yearly average of 52,000 jobs.
- Ambulatory health and hospitals accounted for nearly all of the job growth.
- Nursing homes and residential care added 8,900 jobs.
- Wage growth in healthcare is now highest in hospitals, at 5.1% year over year. Wage growth in nursing and residential care has fallen to 4.7% from a high of 11.0% last spring. Wage growth in ambulatory care settings was 3.6%.