Overview:
According to Altarum’s monthly Health Sector Economic Indicators brief released on Thursday, year-over-year growth in the home health space reached 13.5% in October, marking it as the fastest-growing component of national health spending. The report provides insights into the healthcare industry’s dynamics, comparing spending in various sectors.
Key Findings:
Nursing home care spending grew by 7.8% during the same period, a notable deceleration from its position as one of the fastest-growing categories in September.
Altarum expanded on the official estimate of Medicare and Medicaid expenses in 2022, including data through October 2023, surpassing overall national health expenditure growth, which stood at 4.1% in 2022.
Year-over-year prices for nursing home care grew by 5.1%, while prices for home healthcare increased by 4.6%, both exceeding the overall growth in healthcare prices, which was 3.1% in October.
Personal healthcare spending growth in October reached 7.7% year-over-year, primarily driven by increased usage rather than price increases.
Job Growth in Healthcare:
In November, the healthcare sector added 76,800 jobs, tying July for the most jobs added in a month over the past year.
Ambulatory care settings and hospitals were the major contributors, collectively adding 35,800 and 23,700 jobs, respectively.
Employment in nursing and residential care facilities grew by 6.7% in November, with nursing homes adding 5,700 jobs.
Employment in home health care grew by 4.4% over the same period.
Wage Growth and Employment Trends:
Healthcare employment growth is showing signs of slowing, according to the latest Bureau of Labor Statistics data.
Wage growth was highest in nursing and residential care at 4.7% year over year in October, followed by hospitals at 4% and ambulatory care settings at 3.2%.
Conclusion:
The Altarum report sheds light on the significant growth in the home health sector, outpacing other components of national health spending. As job growth and wage trends in the healthcare industry evolve, close monitoring of the sector’s dynamics will be crucial for stakeholders and policymakers.
