Health Sector Economic Indicators Briefs

Altarum’s Health Sector Economic Indicators briefs are designed to address significant shortcomings in the availability of timely economic data on the health sector, including employment, spending, and prices. Published monthly, the reports are a product of Altarum's Center for Sustainable Health Spending.

May 2012 Health Sector Economic Indicators Briefs

Health care job growth slowed in April, with just 19,000 new jobs created compared to the 24-month average of 24,000 jobs. Prior to April, job growth for the first quarter of 2012 was 97,000, leaving the health share of national employment at a record high of 10.8 percent. Since December 2007, the health sector has added 1.2 million jobs, a cumulative growth of 9.2 percent. This month’s data also reveal that health spending grew at 4.0 percent year-over-year in March 2012, just above the record full-year low of 3.8 percent set in 2009. Health care prices in March 2012 were 1.9 percent higher than in March 2011, bringing growth barely above its February 2012, 14-year low. The March 2012 12-month moving average price growth of 2.1 percent is the lowest since December 1998.The health spending share of GDP was 18.0 percent in March 2012, 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.

April 2012 Health Sector Economic Indicators Briefs

Health care prices rose just 1.8 percent in February 2012, the lowest rate of inflation since April 1998. Price growth for nearly all health categories moderated, especially hospital care and physician services. Altarum’s data also reveal that health spending growth continues a downward trend begun in February 2011, with 3.9 percent growth in February 2012 compared to February 2011, hovering around the record full-year low of 3.8 percent in 2009. With 26,000 new health care jobs created in March, health care employment hit another all-time high of 10.8 percent of total employment. This was slower than the rapid growth seen in February but still above the two-year average of 24,000 per month.Health spending growth rates have been falling over the last 12 months and growth in per capita health care utilization has been steady at an average of 0.8 percent in the last six months. The health spending share of GDP was 18 percent in January 2012, 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.

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.

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.

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.

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.

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.

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.

September 2011 Health Sector Economic Indicators Briefs

The health care spending share of GDP reached an all-time high of 18.2 percent in June 2011. Health spending in July 2011 grew by 5.1 percent relative to July 2010, yet health care price inflation for the same period remained subdued at 2.2 percent. Finally, the September briefs indicate that the health sector continues to create jobs – 30, 000 in August – despite last month’s report of zero growth in jobs for the overall economy. Health now accounts for 10.8 percent of total employment – an all-time high.

August 2011 Health Sector Economic Indicators Briefs

The health care spending share of GDP reached 18 percent in June 2009 and is now at 18.1 percent. This finding is attributable to newly-released government data showing that the recession was even worse than first depicted and that GDP has not returned to its pre-recession peak.

Revised data show that the health spending share of GDP grew from 16.3 percent to 18.0 percent from the start of the recession in December 2007 to its end in June 2009. Hitting 18 percent of GDP for the first time is clearly noteworthy, especially when roughly half of health spending is financed by the government. However, weak economic growth rather than high health spending growth is the main culprit for the increase. Health care spending and prices continued their moderate growth in June and employment sharply rebounded in July after two slow months.

The health care spending, price, and labor briefs, now released simultaneously each month, provide a unique opportunity to examine these data in an integrated manner.

July 2011 Health Sector Economic Indicators Briefs

Health care spending in the first four months of 2011 grew at an annual rate of 4.7 percent, up from 3.9 percent growth in 2010. Higher spending growth was attributed to a rebound in health care utilization as health care price inflation has actually slowed in recent months.

The health care spending, price, and labor briefs, now released simultaneously each month, provide a unique opportunity to examine these data in an integrated manner.

June 2011 Health Sector Economic Indicators Brief (Prices)

In the June 2011 brief, data indicate that health care prices in April 2011 were 2.0 percent higher than in April 2010 – the fourth consecutive month of 2 percent or less growth. Prices for hospitals and for physicians each grew by only 1.5 percent, year over year, in April. These sectors were large enough to offset the 4.3 percent growth in prices for prescription drugs and hold overall growth at 2 percent.

Download June 2011 Brief (in PDF)

May 2011 Health Sector Economic Indicators Brief (Labor)

In the May 2011 brief, data indicate that private sector health care employment in the United States grew by 37,300 in April, the largest monthly increase since December 2006. Employment in physician offices and hospitals showed the greatest acceleration with growth rates doubling compared to their 12 month trends.

Download May 2011 Brief (in PDF)

April 2011 Health Sector Economic Indicators Brief (Prices)

In the April 2011 brief, data indicate that health care prices in March 2011 were 1.9 percent higher than in March 2010 – the third consecutive month of less than 2 percent growth with particularly slow growth in hospital and physician prices.These two sectors were large enough to offset the 4.0 percent growth in prices for prescription drugs and hold overall growth below 2 percent.

Download April 2011 Brief (in PDF)

March 2011 Health Sector Economic Indicators Brief (Spending)

In the March 2011 brief, data indicate that health spending in January 2011 grew by 4.4 percent compared to January 2010—the 28th consecutive month of historically low growth. This brief shows that health spending growth for the 28 months from October 2008 through January 2011 has averaged 3.9 percent and has not exceeded 4.4 percent for any given month. The health spending share of GDP was 17.7 percent in January 2011, up from 16.3 percent at the start of the recession (December 2007), but relatively unchanged from January 2010.

Download March 2011 Brief (in PDF)

February 2011 Health Sector Economic Indicators Brief (Labor)

In the February 2011 brief, data indicate that private sector health care employment in the United States reached an all-time high of 10.7 percent of total employment. This health sector employment share is an increase of more than one percentage point since the start of the recession in December 2007 when the share stood at 9.5 percent.

Download February 2011 Report (in PDF)