Fitch: State governments will spend 8% more on healthcare by 2025

State and local governments can expect to spend 7.6 percent more of their budget on healthcare by 2025 as healthcare inflation continues to rise, according to a Fitch Ratings report.

The share of state and local budgets allocated to healthcare is expected to increase to 38.3 percent by 2025, up from 30.7 percent in 2015. Other priorities, including education, transportation and public safety, are expected to take a hit.

Assuming no significant policy action is taken over next several years to combat the rising prices, healthcare spending is expected to reach $1.6 trillion by 2025. In 2015, healthcare spending was $929 billion.

Fitch says these rising healthcare costs will pressure the credit ratings of lower-rated states.

Read the full report here.

More articles on healthcare finance:
Fewer medical mistakes saved hospitals $2.9B from 2014 to 2016
$28k: The average price healthcare will cost a family of 4 in 2018
9 latest hospital credit downgrades

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

 

Top 40 Articles from the Past 6 Months