Health Sector Trend Report, January 2017

Click to access Altarum%20RWJF%20Trend%20Report%20January%202017.pdf

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These reports, with funding from the Robert Wood Johnson Foundation, provide a monthly summary of key trends in health care spending, prices, utilization, and employment.

They are related to, but distinct from, the Center for Sustainable Health Spending Health Sector Economic Indicators.

The trend reports make direct use of the Quarterly Services Survey (QSS), the timeliest source of detailed, survey-based spending information for health care services, which account for more than 70% of national health spending.

Each quarter, when new QSS data are released (March, June, September, and December), we will publish an expanded version of this report with a more detailed analysis of health care services trends.

The regular monthly reports will supplement the most recent full quarterly analysis with new data on other aspects of health spending, health care prices and utilization, employment and early indications of the trends for the next quarter.

This report provides a monthly summary of key trends in U.S. health care spending, prices, utilization, and employment. The reports build on Altarum’s Health Sector Economic Indicators SM briefs (HSEI) and make direct use of the U.S. Census Bureau’s Quarterly Services Survey (QSS). When new QSS data are released (March, June, September, December), an expanded version of this report is published. Interim reports highlight noteworthy health sector trends and early indications of results for the next quarter. In this January 2017 report, spending estimates are available through November 2016, while prices and labor are available through December 2016.

Healthcare Sector Economic Indicators – Labor Brief

Click to access CSHS-Labor-Brief_July_2016.pdf

Health care added 38,500 new jobs in June, consistent with the 12-month average of 40,100 new jobs per month. Growth in both ambulatory care settings and hospitals was barely under the pace seen over the past year, with ambulatory care adding 19,300 jobs and hospitals adding 15,000 jobs in June. Health jobs grew 3.2% year over year while non-health jobs grew 1.6%, increasing the health share of total employment to a new all-time high of 10.78%.

Health Sector Economic Indicators – Price Brief

Click to access CSHS-Price-Brief_July_2016.pdf

Health care prices in May 2016 were 1.5% higher than in May 2015, the third consecutive month at this rate. The May 2016 12­month moving average was 1.2% for the fourth straight month. Year-over-year hospital price growth rose modestly to 1.0% from 0.8% in April. Physician and clinical services prices rose only 0.3% in May, down from 0.6% growth in April. Drug price growth fell to 3.3% from 4.0% in April.

Health Sector Economic Indicators – Spending Brief

Click to access CSHS-Spending-Brief_July_2016.pdf

National health spending in May 2016 was 5.0% higher than in May 2015. Spending on prescription drugs dropped to 5.2% growth, continuing its decline from the 12.2% spike in 2014. The health spending share of gross domestic product (GDP) stood at 18.1% in April as moderate health spending growth of 5.2% still far outpaced anemic GDP growth of 3.3%.  Official government projections released on July 13 anticipate spending growth of 4.8% for all of 2016, the lowest rate since 2013.