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How Fast Is The Healthcare Industry Growing?

How Fast Is The Healthcare Industry Growing
Commercial and Medicare Advantage segments, physician offices, HST and specialty pharmacy segments may grow most quickly. – Based on updated and expanded projections, we estimate that healthcare profit pools will grow at a 4 percent CAGR from $654 billion in 2021 to $790 billion in 2026; in our previous article, we estimated a 6 percent growth from 2021 to 2025.

The industry faces difficult conditions in 2023, primarily because of continuing high inflation rates and labor shortages. However, we expect improvement efforts to help the industry overcome these challenges in 2024 and beyond. Several segments can expect higher growth: Medicare Advantage within payers; care settings such as ambulatory surgery centers within providers; software and platforms (for example, patient engagement and clinical decision support) within HST and specialty pharmacy within pharmacy services.

These assessments generally align with our earlier article’s conclusions. On the other hand, the outlook for some segments has worsened compared with our previous analysis, including general acute care and post-acute care within providers and Medicaid within payers. Going forward, a number of factors will likely influence shifts in profit pools. These include:

Change in payer mix: A substantial shift toward Medicare will continue, led by growth in the over-65 population of 3 percent per year projected over the next five years and continued popularity of Medicare Advantage among seniors, as reflected in the latest Centers for Medicare & Medicaid Services (CMS) enrollment data.3 However, based on our models, Medicaid enrollment could decline by about ten million lives over five years given recent legislation that will allow states to begin eligibility redeterminations, which were paused during the federal public health emergency that was declared at the start of the COVID-19 pandemic.4 Commercial segment margins in 2021 were about 200 basis points lower than 2019 levels, resulting from the return of deferred care. We expect profit pools in this segment to rebound and grow at a 15 percent CAGR as EBITDA margins will likely return to historical averages by 2026. The growth will be partially offset by enrollment changes in the segment, prompted by a shift from fully-insured to self-insured businesses that could accelerate as employers facing recessionary pressure seek to cut costs. Endemic COVID-19: Since the publication of our last article, COVID-19 has moved more and more toward an endemic stage. Based on our estimates, endemic COVID-19 could result in healthcare costs of about $200 billion annually in the United States. The majority of these costs would be related to the prevention and treatment of COVID-19 cases as well as long COVID.5

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The industry faces difficult conditions in 2023, primarily because of continuing high inflation rates and labor shortages.

What is the most rapidly growing area of healthcare services?

Health Care Support Is the Fastest Growing Sector – Within the industry, health care support is the fastest growing sector and within this sector is healthcare management. Anyone with a Master’s Degree in Health Care Management can expect to rapidly rise within their career and according to the BLS this one sector is expected to grow by more than 17% in the coming decade, a rate that is much higher and faster than the national average.

Which medical field is most in demand?

Which medical jobs are most in-demand? – Nurse practitioners, nurse midwives, and nurse anesthetists are massively in demand. The BLS projects a 40% job growth for all three types of nurses from 2021-2031, a much faster rate than the average of 5% for all occupations.

Which country has the biggest healthcare industry?

South Korea – South Korea tops the list of best healthcare systems in the world. It’s been praised for being modern and efficient, with quality, well-equipped medical facilities and highly trained medical professionals. Generally, treatment in South Korea is affordable and readily available.

  • The number of beds per 1000 people is 10, which is well above the OECD countries’ average of 5.
  • South Korea provides universal healthcare but much healthcare is privately funded.
  • Not all treatment is covered by South Korea’s universal healthcare scheme.
  • Some procedures, such as those related to chronic illnesses such as cancer, won’t be covered and can be more expensive.

This is where expats should ensure they’re covered with comprehensive private healthcare insurance.

What industries are expected to grow the most?

Leisure and Hospitality – Reflecting cyclical growth, leisure, and hospitality are expected to experience the fastest compound annual rate of change growth at 1.3% among all U.S. sectors from 2021-31, the BLS says. That amounts to more than 1.9 million projected jobs to be added during that period.

What is the largest healthcare occupation?

  • Nursing is the nation’s largest healthcare profession, with nearly 4.2 million registered nurses (RNs) nationwide. Of all licensed RNs, 84.1% are employed in nursing.1
  • The federal government projects that more than 203,000 new registered nurse positions will be created each year from 2021-2031.2
  • Registered Nurses comprise one of the largest segments of the U.S. workforce as a whole and are among the highest paying large occupations. Nearly 55% of RNs worked in general medical and surgical hospitals, with an average salary of $77,600 per year according to the Bureau of Labor Statistics.2, 3
  • Nurses comprise the largest component of the healthcare workforce, are the primary providers of hospital patient care, and deliver most of the nation’s long-term care.
  • Employment of registered nurses is projected to grow by 6% each year from 2021 to 2031. Growth in the RN workforce will occur for a number of reasons, including an increased emphasis on preventive care; growing rates of chronic conditions, such as diabetes and obesity; and demand for healthcare services from the baby-boom population, as they live longer and more active lives.2
  • Most healthcare services involve some form of care by nurses. Registered nurses are in high demand in both acute care and community settings, including private practices, health maintenance organizations, public health agencies, primary care clinics, home health care, nursing homes, minute clinics, outpatient surgicenters, nursing school-operated clinics, insurance and managed care companies, schools, mental health agencies, hospices, the military, industry, nursing education, and healthcare research.
  • Though often working collaboratively, nursing does not “assist” medicine or other fields. Nursing operates independent of, not auxiliary to, medicine and other disciplines. Nurses’ roles range from direct patient care and case management to establishing nursing practice standards, developing quality assurance procedures, and directing complex nursing care systems.
  • With more than three times as many RNs in the United States as physicians, nursing delivers an extended array of healthcare services, including primary and preventive care by nurse practitioners with specialized education in such areas as pediatrics, family health, women’s health, and gerontological care. Nursing’s scope also includes services by certified nurse-midwives and nurse anesthetists, as well as care in cardiac, oncology, neonatal, neurological, and obstetric/gynecological nursing and other advanced clinical specialties.3
  • Most registered nurses today enter practice with a baccalaureate degree offered by a four-year college or university, or an associate degree offered by a community college. As of 2020, 65.2% of the RN workforce earned a baccalaureate or higher degree as their highest level of nursing education.2
  • Employers are expressing a strong preference for new nurses with baccalaureate preparation. Findings from AACN latest survey on the Employment of New Nurse Graduates show that nearly 41% of employers require new hires to have a bachelor’s degree while 77% strongly prefer baccalaureate-prepared nurses.4
  • In 2020, 14.9% of the nation’s registered nurses held a master’s degree and 2,2% held a doctoral degree as their highest educational preparation. The current demand for master’s- and doctorally prepared nurses for advanced practice, clinical specialties, teaching, and research roles far outstrips the supply.1
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REFERENCES

  1. Smiley, R.A., Ruttinger, C., Oliveira, C.M., Hudson, L.R., Lauer, Allgeyer, R., Reneau, K.A., Silvestre, J.H., & Alexander, M. (April 2021). The 2020 National Nursing Workforce Survey. Journal of Nursing Regulation, 12(1), Supplement (S1-S48).
  2. U.S. Bureau of Labor Statistics. (2022). Occupational Outlook Handbook: Registered Nurses.
  3. U.S. Bureau of Labor Statistics. (2022 ). Occupational Outlook Handbook: Nurse Anesthetists, Nurse Midwives, and Nurse Practitioners.
  4. American Association of Colleges of Nursing. (2021). Employment of New Nurse Graduates and Employer Preferences for Baccalaureate-Prepared Nurses.

Updated: September 2022

Which country has the best hospitals?

Which country overall has the best hospitals? – The top four spots on Newsweek and Statista’s list are dominated by US hospitals. In first place comes Rochester’s Mayo Clinic in Minnesota. If you’ve ever Googled symptoms, chances are you’ve heard of Mayo Clinic as the group has articles and advice on practically every ailment.

The Rochester Mayo Clinic is widely heralded as being the best in health issues including cancer, heart health, geriatrics, gynaecology, and neurology. In second place, Newsweek named Cleveland Clinic in Ohio, in third Massachusetts General Hospital, Boston, and in fourth, The Johns Hopkins Hospital, Baltimore.

Overall, the US takes 10 places in the top 25 and 46 out of the 250 hospitals listed all together.

Is every field in the medical industry is in high demand all around the world?

Opportunity to Travel – People need qualified medical professionals all around the country and all around the world. Your career is not limited by geography. There are work opportunities all around the world from large cities to developing communities.

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Is healthcare the largest and most powerful employer?

The U.S. health care industry is the largest and most powerful employer in the nation. -It employs more than 13% of the total labor force in the United States. -The growth of health care services is closely linked to the demand for health services professionals. All states require physicians to be licensed to practice.

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