US Healthcare Spending to Grow 5.2% Yearly in Nominal Terms to 2023

10/9/2019

Cleveland, OH, October 9, 2019 — US healthcare expenditures are forecast to advance 5.2% annually in nominal terms through 2023, according to Healthcare: United States, a report recently released by Freedonia Focus Reports. In real (inflation-adjusted) terms, spending is projected to rise 2.5% annually to 2023. Providers of healthcare services and products are expected to benefit from continued growth in consumer incomes and a projected rise in the number of acute and chronic conditions, itself driven by the graying of the US population. Faster gains in value terms will be limited by efforts to curb growth in healthcare costs.

Hospital services are projected to remain the largest expenditure segment. The continued aging of the population and the resulting growth in the number of acute and chronic conditions will continue to drive demand. Spending for home healthcare services is projected to exhibit the most rapid growth among discrete expenditure segments, with expected annual increases of 6.6% through 2023. The lower costs associated with home healthcare services relative to nursing homes and the desire of many persons to remain in their homes are expected to drive advances.

These and other key insights are featured in Healthcare: United States. This report forecasts to 2023 US healthcare expenditures in nominal and real (inflation-adjusted) US dollars. Total nominal expenditures are segmented by type in terms of:

  • hospital
  • physician and clinical
  • dental
  • other professional providers
  • nursing and continuing care retirement facilities
  • home healthcare
  • other providers such as worksites and schools
  • prescription drug retail sales
  • other medical product retail sales
  • nonpersonal healthcare expenditures such as net cost of private healthcare insurance, medical structures and equipment, and public health activities

Total nominal expenditures are also segmented by funding source as follows:

  • private insurance
  • Medicare
  • Medicaid
  • out-of-pocket
  • investment
  • other funding sources such as military and veteran’s insurance programs, public welfare programs, and public health activities

To illustrate historical trends, total healthcare expenditures in nominal and real terms; the various segments in nominal terms; and firm, establishment, employment, and payroll data are provided in annual series from 2008 to 2018.

More information about the report is available at:

https://www.freedoniafocusreports.com/Healthcare-United-States-FF40017/?progid=91541