March 2012 Health Sector Economic Indicators Briefs

January and February 2012 saw the largest ever two-month increase in health care jobs, with 49,000 new jobs created in February and 43,000 in January. The soaring job creation has brought the health sector share of total national employment to an all-time high of 10.8 percent.  Altarum’s data also reveal that health spending growth continues a downward trend begun in February 2011, with just 3.4 percent growth in January 2012 compared to January 2011, hovering around the record full-year low of 3.8 percent in 2009. Health care inflation, hitting 2.0 percent in January, remains at the lowest level in 13 years. With steady price inflation, and the rate of spending growth falling in the last 12 months, growth in per capita health care utilization slowed to an average of 0.4 percent in the last three months. The health spending share of GDP was 18.0 percent in December 2011, up from 16.4 percent at the start of the recession (December 2007), but down from the all-time high of 18.2 percent in June 2011. View video.

February 2012 Health Sector Economic Indicators Briefs

New analysis shows that health care spending in the U.S. in 2011 grew at one of the slowest rates in 50 years. Altarum’s reports provide the first look at full-year 2011, showing health spending at $2.71 trillion. Spending was up 4.4 percent from 2010—the third slowest rate of growth since national health expenditures have been tracked. The health spending share of gross domestic product was 18.1 percent in December 2011, up from 16.4 percent at the start of the recession (December 2007), but down slightly from the all-time high of 18.2 percent in June 2011. Altarum’s data indicate that health care price inflation was only 2.1 percent for all of 2011, the lowest annual figure since 1998, when it stood at 2.0 percent. Health employment in January 2012 rose by 31,000, well above the 2-year average of 22,000 jobs and contrasting with weak employment growth seen in the last quarter of 2011. At 10.73 percent of all jobs in January 2012, the health employment share is fractionally lower than the all-time high of 10.74 percent in October 2011. View video.

January 2012 Health Sector Economic Indicators Briefs

Over the first 11 months of 2011, health spending has grown at an annual rate of 4.5 percent, compared to the 3.9 percent increase for 2010. This growth was driven by high spending early in 2011 followed by a gradual, steady decline. Spending grew by only 3.6 percent in November 2011 relative to November 2010. Thus, while spending for 2011 as a whole is up, the nation will likely enter 2012 with health spending growth near the record-low levels experienced in 2009 and 2010. Health care price inflation was 2.0 percent in November, a rate that has been steady throughout 2011, indicating the early 2011 jump in health spending can be traced to a bounce back in per capita health care utilization, which exhibited almost no growth in 2010. Health employment in December rose by 23,000 jobs, just under the 2-year average of 24,000. The health spending share of GDP was 17.8 percent in October 2011, up from 16.4 percent at the start of the recession (December 2007) but down from the all-time high of 18.2 percent in June 2011. View video.

December 2011 Health Sector Economic Indicators Briefs

October health price inflation, at 1.9 percent, represents a 13-year low; health spending growth in October ticked down to 5.0 percent, and health employment in November exhibited below-average growth of 17,000 jobs. Total health spending growth fell from its September value of 5.2 percent (year-over-year), brought down by slower growth in hospital, physician services, and nursing home spending. The health spending share of the total economy, currently at 18.1 percent, appears to be stabilizing around 18 percent, and is barely off its all-time high of 18.2 percent reached in June 2011. The December briefs show health jobs up 17,000 in November and include an important upward revision to October job growth, from 12,000 to 24,000. View video.

November 2011 Health Sector Economic Indicators Briefs

Health price inflation remains flat – up only 2.1 percent in September compared to September 2010 – continuing an 8-month trend of near 2 percent inflation. Total health spending, led by higher hospital spending, grew by 5.2 percent in September relative to September 2010. The average spending growth rate for the third quarter of 2011 was also 5.2 percent, compared to 4.8 percent growth in the second quarter of 2011. The health spending share of the total economy remains above 18 percent for the fifth consecutive month. The November briefs also point to a slower rate of health employment for October, with a rise of 12,000. The previous three months, on average, saw 36,000 health jobs added per month. View video.

October 2011 Health Sector Economic Indicators Briefs

Health spending in August grew by 5.0 percent relative to August 2010, matching the annualized growth rate for the first eight months of 2011. This contrasts with the 9 percent increase in family premiums recently reported for 2011. Health care prices were up only 2.1 percent compared to August 2010 – well below economy-wide inflation. Between August and September, the health sector added 44,000 jobs, the largest monthly gain in nearly a decade, resulting in yet another record share of total jobs. View video.

Introducing the Altarum Center for Sustainable Health Spending

A brief video overview of the Center for Sustainable Health Spending and its work. View video.

Building a Research Agenda to Support Sustainable Health Spending

America’s current fiscal path has become a matter of intense scrutiny within the government policy making, academic research, and philanthropic communities.   Health care, particularly the Medicare program, is the principal source of projected future budget deficits.  Moving toward a sustainable system will be a major goal for many years, regardless of the fate of the Affordable Care Act.  This half-day meeting explored paths to health care cost control, i.e., “bending the curve,” without sacrificing quality or access, and the meeting served as a kick-off event to a new five-year, internally funded, Altarum Institute initiative: the Sustainable Health Spending “Critical Systems Issue.” Harvard’s Michael Chernew chaired the meeting. View video highlights or view entire meeting.