Health care employment and spending shares hit all-time highs while inflation remains subdued
ANN ARBOR, Mich.--(BUSINESS WIRE)-- According to the September Health Sector Economic Indicators briefs from Altarum Institute’s Center for Sustainable Health Spending, 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 briefs indicate that the health sector continues to create jobs – 30, 000 in August – despite last month’s report of zero jobs growth for the overall economy. Health now accounts for 10.8 percent of total employment – an all-time high.
The complete set of briefs, providing monthly data on health care spending, prices, and employment, can be viewed at www.altarum.org/healthindicators.
“While there is anecdotal support of health sector belt-tightening in anticipation of imminent policy changes, there is still no evidence in the data of a slowdown in health spending or employment,” said the center’s director, Dr. Charles Roehrig. “We simply don’t see the falling employment or spending trends that have plagued other sectors in the economy. As GDP expectations for 2011 and 2012 continue to be scaled back, our analysis shows the share of the overall economy tied to health is likely to increase.”
“As the president and the Congress wrestle with creating jobs in this economy while also reducing federal spending, we should recognize the delicate balance the health sector presents,” said Roehrig. “Federal spending on health care will be looked at. Yet health care continues to create jobs, offering some stabilizing effect. Losing any jobs in a zero-employment -growth environment risks further economic stagnation and presents a potential policy dilemma.”
Altarum’s Health Sector Economic Indicators briefs offer timely analysis of health sector employment, spending, and prices. To receive an email notification regarding the monthly release of Health Sector Economic Indicators, please visit http://www.altarum.org/publications-resources-health-systems-research/sign-up.
Altarum Institute (www.altarum.org) integrates objective research and client-centered consulting skills to deliver comprehensive, systems-based solutions that improve health and health care. Altarum employs more than 400 individuals and is headquartered in Ann Arbor, Mich., with additional offices in the Washington, D.C., area; Sacramento, Calif.; Atlanta, Ga.; Portland, Maine; and San Antonio, Texas.
CONTACT:
Altarum Institute
Jeff Moore, 703-575-1685
[email protected]
KEYWORDS: United States North America Michigan
INDUSTRY KEYWORDS: Health Public Policy/Government Healthcare Reform Labor Public Policy General Health Managed Care
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