Aging US Population, Inflation Set to Boost Healthcare Spending Values

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Aug 25, 2022, 11:54 ET

Spending to rise 8.3% in 2022

CLEVELAND, Aug. 25, 2022 /PRNewswire/ -- US healthcare expenditures are forecast to increase 6.2% annually in nominal dollars through 2026, according to Healthcare: United States, a report recently released by Freedonia Focus Reports. In real (inflation-adjusted) terms, spending is projected to rise 2.2% annually from 2021 to 2026. 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 driven by the aging of the US population. In addition, inflation is projected to represent a significant component of nominal growth in healthcare expenditures. Faster gains in nominal value terms will be constrained by efforts to limit growth in healthcare spending by public and private healthcare insurance plans, state and federal government agencies, and employers that purchase healthcare insurance. Efforts span measures to help individuals become healthier as well as experimenting with different types of payment models.

Healthcare expenditures are projected to increase 8.3% in 2022. An elevated rate of inflation throughout the economy and the labor shortages facing providers of healthcare services will contribute to strong gains. In addition, as cases subsided in spring 2022, many individuals returned to regular routine healthcare based in doctors' offices and outpatient clinics that may have been postponed due to high COVID-19 spread earlier in the year as well as in past years. Strong capacity utilization early in the year, due to the Omicron wave of COVID-19, will have also supported gains. In real terms, healthcare expenditures are expected to increase 1.1% in 2022.

These and other key insights are featured in Healthcare: United States. This report forecasts to 2022 and 2026 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 (e.g., chiropractors, speech therapists)
nursing and continuing care retirement facilities
home healthcare
other providers, such as assisted living facilities, community centers, and residential intellectual and developmental disability facilities
prescription drug retail sales
other medical product retail sales, such as disposable medical supplies, durable medical equipment, and non-prescription drugs
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 veteran's insurance programs, public welfare programs, and public health activities

To illustrate historical trends, total healthcare expenditures in nominal and real terms, and the various segments in nominal terms, are provided in annual series from 2011 to 2021.

More information about the report is available at:
https://www.freedoniafocusreports.com/Healthcare-United-States-FF40017/?progid=91541

About Freedonia Focus Reports

Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Healthcare & Biotechnology reports can be purchased at Freedonia Focus Reports or MarketResearch.com.

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