Nursing home care and home healthcare were two of the fastest-growing categories of healthcare spending in 2023, according to Altarum’s monthly Health Sector Economic Indicators brief, released Tuesday.
Initial data show that national health spending overall grew by 6.2% for the year, whereas the gross domestic product grew by 6.3%. Personal healthcare spending grew by 7.7%.
“Our latest Health Sector Economic Indicators provide the first look at health spending for the entire year of 2023,” Corwin “Corey” Rhyan, research director of health economics and policy at Altarum, told the McKnight’s Business Daily.
Spending on home healthcare increased 10.7% in 2023, and spending on nursing home care increased by 9.8%, according to the report.
The increases in both sectors, Rhyan said, were driven by increases in utilization and higher healthcare prices, “although increases in utilization were a greater contributor to home healthcare spending in 2023.”
“Conversely, increases in prices were a greater factor in the increases in nursing home care spending,” he added. “Price growth for nursing home care averaged 5.8% in 2023, while price increases averaged a more modest 4.4% for home healthcare services.”
31,600 jobs added in nursing homes/home health
Month over month, healthcare employment overall increased by 70,300 jobs in January, an amount greater than the 12-month average of 58,700. January’s healthcare job growth, according to the brief, was led by growth in ambulatory care settings, which added 33,400 jobs, and hospitals, which added 20,400 jobs. Nursing and residential care facilities added 16,500 of total healthcare jobs in January, and home healthcare added 15,100 jobs.
Hiring in the nursing home and home healthcare sectors has remained above average in 2024, with rapid growth related to providers’ efforts to manage increases in the use of care, according to Ryhan.
“Despite this increased recent hiring, overall nursing home and residential care employment remains 4.1% below its pre-pandemic level, likely indicating room for more hiring in this sector in 2024,” he said.
