Hospital spending reaches historic number as healthcare hiring slows: 5 things to know

A recent study by Altarum's Center for Sustainable Health Spending revealed a decline in hospital spending growth and slower healthcare hiring.

Here are five findings from the study.

1. The hospital spending growth rate was 0.8 percent in June. This is the lowest recorded year-over-year monthly growth rate in more than 25 years, according to the study.

2. Paul Hughes-Cromwick, co-director of Altarum's Center for Sustainable Health Spending, said overall healthcare spending growth "dropped to the 4 percent range" this month, "reminiscent of the historic slowdown prior to expanded coverage under the ACA."

3. The study found total national healthcare spending in July 2017 (seasonally adjusted at an annual rate) was $3.49 trillion, up 4.1 percent from July 2016.

4. Healthcare job growth slowed in recent months. Healthcare added 41,000 jobs in July and 36,000 in June, according to the study. The industry added 20,000 jobs last month. Mr. Hughes-Cromwick said, "This makes sense, because those higher rates did not align with an overall slowdown in spending growth."

5. The study found hospitals are adding 6,000 jobs per month compared to 10,000 to 11,000 new jobs added per month in 2015 and 2016. "With indications of declining hospital utilization and reports of potential job losses at individual hospitals, further declines in hospital job growth are expected in coming months," the study states.

 

 

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