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The Healthcare Investor Insights on Issues & Trends that Impact Investments in Healthcare & Life Science Businesses

Studies Show US Healthcare Spending Still Slowly Increasing, Reaching 17.7% of GDP

Posted in Life Sciences Investing

 

Analysis by Altarum Institute’s Center for Studying Health Spending indicates that health spending in January 2011 grew by 4.4% compared to January 2011, marking the 28th consecutive month of historically low growthThis healthcare spending increase to $2.64 trillion accounted for 17.7% of GDP.   Noteably, in the prior year, separate National Health Expenditure Accounts (NHEA) data, indicates that the percentage of GDP spent on healthcare in 2009 had jumped to 17.3% from 16.2% in 2008, the largest one-year increase since 1960. At the current rate of growth, healthcare costs are predicted to nearly double to $4.5 trillion in 2019.  At that point, NHEA data indicates healthcare costs will account for 19.3%, or roughly one-fifth, of GDP.

Altarum Institute is a nonprofit health systems research and consulting organization.   The NHEA are the official measurements of US expenditures for healthcare goods and services published by CMS and since 1960 have been the official estimates of total national healthcare spending.  NHEA data are presented by type of service, sources of funding and sponsors. Through its Office of the Actuary, CMS releases each year projections of healthcare spending for those same categories as are measured in the NHEA.  

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