Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
By the Numbers
The healthcare component of the U.S. economy continues to expand, with per-capita spending projected to reach $13,000 by 2020. But, at the same, the industry continues to create jobs: 10 of the fastest-growing occupations are in healthcare-related fields.
Driver of the Economy
As one of the largest segments of the US economy, health care accounts for trillions of dollars in spending, both by governments and private individuals. And so, Top Masters in Healthcare decided to take a closer look at where the money goes in this infographic
###
[The Calculus]
Billing Department
So who does the spending?
- 21% of healthcare spending is done by private businesses
- 28% of healthcare spending is done by individual households
- 16% of healthcare spending is done by state and local governments
- 29% of healthcare spending is done by the Federal government
Where did the spending go?
- 37% of healthcare spending went towards hospital care
- 23.6% of healthcare spending went towards physician and clinical services
- 5.9% of healthcare spending went towards other residential / health / personal care services
- 4.9% was spent on dental services
- 3.3% was spent on home health care
- 3.2% was spent on “other” professional services
Per capita spending
Between 1960 and 2011, per capita health care spending rose by about 5,400 percent from $147 in 1960 to $8,311 in 2011. If other prices rose like that, here’s what it might look like today:
- Family Dinner: $176.58
- Tube of Toothpaste: $13.50
- Volkswagen Beetle: $95,526
- Gallon of gas: $13.50
- Average income: $287,010
- Electric can opener: $479.52
Emergency Department
The top 5 causes of death are heart disease (24.5%) cancer (23.3%) chronic lower respiratory diseases (5.6%) stroke (5.3%) accidents (4.8%) Alzheimer’s disease (3.2%).
Cardiology
- 470,000 is the number of people who have a second or subsequent heart attack
- 785,000 is the annual estimate of the number of people who have their first heart attack
- $444 billion is the cost of heart disease, from health care services to medications to lost job productivity
Oncology
- One in two men will get cancer during their lifetimes
- One in three women will get cancer in their lifetimes
- $226 billion is the annual cost of cancer, including treatment and lost income
Ongoing Care
- Nearly 1 billion annual physician visits per year. If you had a doctor visit every minute of every day, it would take 1,902 years to have that many trips.
- One out of 2 adults has a chronic illness
- Seven out of every ten deaths are a result of a chronic illness
Obesity
- The heaviest states by obesity rate are Mississippi (34.4%) West Virginia (32.2%) Alabama (32.3%) Tennessee (31.9%) and Louisiana (31.6%)
- The lightest states by obesity rate are Hawaii (23.1%) Massachusetts (22.3%) Connecticut (21.8%) District of Columbia (21.7%) and Colorado (19.8%)
Diabetes
- Diabetes can lead to a slew of other serious health problems including neverous system diseases, blindness and eye problems, heart disease and stroke, kidney disease and hypertension.
- 25.8 million people are current affected by diabetes, 8.3% of the population.
- 35% of people older than 20 have pre-diabetes
- $174 billion is the total cost of treating and ealing with diabetes each year
Personnel Department
- Healthcare provided 14.3 million jobs in 2008. And that number is only going to grow. In fact, health care is expected to be the single fastest-growing sector of the US economy through 2018.
- Ten of the twenty fastest growing occupations are in healthcare related fields.
- 4.01 million new jobs are expected to be created in the health care industry by 2018. Compare that to 2.67 million in science/engineering, 1.68 million in education, 1.43 million in administration support and waste management and 1.3 million in construction.
- Healthcare professionals earned a combined $886 billion in total salaries in 2010
IT Department
- As our world becomes more connected by technology, doctors and patients are increasingly using the Internet and data storage.
- 57% of doctor’s offices use electronic medical records.
- 6 out of 10 adults have looked up health information online.
Pharmacy Department
- Almost half of Americans take at least one prescription drug.
- $35.22 is the average price of a brand name drug which is almost 4x as much as the generic price.
- Spending on prescription drugs has gone from $40.3 billion in 1990 to $259 billion in 2010 and is expected to grow to $457.8 billion by 2019.
- The cost to bring a new drug to market is between $55 million and $1 billion
- The cost of patented drugs in the United States is 35-55% higher than other industrialized nations
- 80% of FDA approved drugs have a generic counterpart
- Only 23% of doctor visits don’t include a prescription.
Assessment
The impact of the healthcare industry on everyday Americans continues to grow, whether they see it in their insurance bill or whether they earn their salaries from the health care industry. The issue also continues to dominate the political conversation… there’s no escaping it.
Conclusion
Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.
Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:
DICTIONARIES: http://www.springerpub.com/Search/marcinko
PHYSICIANS: www.MedicalBusinessAdvisors.com
PRACTICES: www.BusinessofMedicalPractice.com
HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
CLINICS: http://www.crcpress.com/product/isbn/9781439879900
BLOG: www.MedicalExecutivePost.com
FINANCE: Financial Planning for Physicians and Advisors
INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
Share this:
Filed under: Health Economics | Tagged: An Economic Picture of Domestic Health, cardiology, diabetes, emergency department, healthcare spending, obesity, Oncology, pharmacy |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Health spending rose slowly in 2012
[Thanks to the recession – not President Obama?]
Health spending rose just a bit, by 3.7 percent, in 2012.
http://www.nbcnews.com/health/health-spending-rose-slowly-2012-thanks-recession-not-obama-2D11866979
But, while the White House tried to take credit for putting on the brakes, it really looks more like plain old economic cycles, according to government actuaries.
Carlyle
LikeLike
National Health Expenditure Projections 2013-2023 Forecast Summary
According to recent projections by Centers for Medicare & Medicaid Services:
• 2013-2023 Health spending projected to grow on average as 5.7%.
• 2013 Health spending growth remained slow at 3.6%.
• 2014 Expected health spending growth is 5.6%.
• 2015-2023 Average annual projected growth will be 6.0%.
• 2023 Financed by federal, state, local governments to be 48%.
• 2012 Health expenditures financed by federal, state, local governments was 44%.
• 2023 Health spending projected to be 19.3% of Gross Domestic Product.
• 2012 Health spending was17.2% of Gross Domestic Product.
Source: NHE Projections 2013-2023 – Forecast Summary
CMS – September 2014
LikeLike
HERE’S SOME GOOD NEWS:
Healthcare spending is expected to increase more slowly during 2016!It’s projected to grow by 6.5 percent this year, according to a report from PWC. That’s still a lot faster than inflation. The Economist projects overall consumer prices in the United States will increase by 1.2 percent this year.
The report suggested several factors are contributing to lower healthcare spending, including:
• The Affordable Care Act’s Cadillac Tax. PWC reported the tax”…is motivating businesses to enact high cost-sharing. Their workers are already responding to the higher deductibles by scrutinizing what services are necessary and which are not…cost sharing can backfire if the employee foregoes preventative care and faces years of chronic illness.” Twenty-five percent of employers offer only high-deductible healthcare plans for employees.
• Virtual healthcare. Telemedicine appears to be the next big thing in medicine. Doctors making house calls using real-time audio and video is the gold standard for service, according to the Modern Medicine Network. Remote patient monitoring, pre-recorded videos, and computer-assisted or message-based communications also are being offered.
• New health advisors. A new variety of healthcare company is making information about facilities, providers, services, and pricing more accessible. In some cases, financial incentives encourage employees to seek treatment at a preferred facility.
These gains are more than offset by factors that are pushing healthcare spending higher, including:
• High-cost specialty drugs. PWC reported specialty drugs are becoming a focus for the pharmaceutical industry. “With 700 specialty products currently in development, these investments will soon surpass traditional drug investments…According to a recent Express Scripts report, total national prescription spending increased 13.1 percent last year to about $980 per person.”
• Cyber security investments. Healthcare organizations are spending heavily on cyber security to protect patients from data breaches. The cost of a breach is about $200 per patient record. The cost of security is about $8 per patient record.
It’s critical to factor healthcare spending into retirement plans. In 2015, the Employee Benefits Research Institute (EBRI) found a 65-year-old man needs $124,000 in savings and a 65-year-old woman needs $140,000 if each wants a 90 percent chance of having enough money saved to cover healthcare expenses in retirement. EBRI’s analysis did not include the savings needed to cover long-term care expenses.
Arthur Chalekian GEPC
[Financial Consultant]
LikeLike
Four Things to Know About National Healthcare Spending
1. National healthcare spending grew 5.5% in 2015
2. This growth marks an increase from 2014, when rapidly rising drug prices and health insurance expansion under the ACA drove spending upward 5.3%
3. National healthcare spending is expected to grow at an average annual rate of 5.8% over the next decade
4. From 2015 to 2025, health spending is projected to grow 1.3% points faster than gross domestic product
Source: Becker’s Hospital Review
LikeLike