The Altarum Institute puts out regular briefs on health spending, health prices, utilization and health care hiring. The latests briefs have been released, covering the period through January. Health care has experienced spending growth, and price growth, which generally has been above the trend for non-healthcare spending over the last decade. But the epidemic and the burst of federal and state government health spending in response to the epidemic have created some strange patterns. One oddity is that right now health spending growth is actually behind GDP growth. In January 2022, year-over-year growth was 4%, but spending in January was lower than in December. GDP growth was 10% as the epidemic bounce-back continued. And health spending as a proportion of GDP dipped to under 18%. If you exclude government spending, the growth was slower. Even more startling, health care price growth was 2.1% year-over-year, while general inflation was almost 8%. Over half of all health spending is in government programs, which dictate price, subject to political pressures. And most commerical contracts with providers run on an annual basis. It is likely that both the government programs and commercial payers will face pressure to raise prices substantially in 2022 and for 2023. Adding to those pricing pressures will be continued hiring by health care companies and demands for wage increases by workers. Utilization rose about 4% year-over-year. (Altarum Briefs)
✅ Subscribe via Email
About this Blog
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at [email protected].
Healthy Skeptic Podcast
This is an outstanding report on total global drug spending and trends, with projections out to 2025. It helps you understand this important area of health care, which does much...
June 1, 2021
MedPAC 2019 Report to Congress
June 18, 2019
Cano Health apparently cannot, as it declares bankruptcy due to too much debt. Building primary care centers to serve Medicare, Medicaid and commercial populations, which is Cano’s business, was hot...
February 6, 2024
Turquoise health raises a fresh $30 million in capital for its price transparency platform, as the market for funding health care companies isn’t quite dead yet.
January 24, 2024
I am co-f0under of a company that manages cell and gene therapy for health plans. Cell therapy has made a big difference for many cancer patients but like all new...
January 24, 2024
Access ACO Care Management Chronic Disease Comparative Effectiveness Consumer Directed Health Consumers Devices Disease Management Drugs EHRs Elder Care End-of-Life Care FDA Financings Genomics Government Health Care Costs Health Care Quality Health Care Reform Health Insurance Health Insurance Exchange HIT HomeCare Hospital Hospital Readmissions Legislation M&A Malpractice Meaningful Use Medicaid Medical Care Medicare Medicare Advantage Mobile Pay For Performance Pharmaceutical Physicians Providers Regulation Repealing Reform Telehealth Telemedicine Wellness and Prevention Workplace