Recent healthcare statistics show that it’s one of the largest and the fastest-growing industries in the world. Healthcare makes up more than 10% of the GDP of most developed countries. In fact, for the US this figure will be close to 18% by the end of 2019. This isn’t surprising—the healthcare sector is the US’s largest employer. Incidentally, the US spends considerably more than the world’s average on healthcare. Research was carried out by PolicyAdvice in which they have been able to come up with interesting points and have created an infographic with information about the healthcare industry (shown below) and how it has been transformed over the years.
According to OECD, the healthcare sector in U.S accounts for close to a fifth of overall GDP in the country. Some of the most exceptional care in the world has been established in the U.S, but the country’s population health has still shown to be trailing behind other wealthy, developed countries. For an average U.S citizen the life expectancy has been calculated to be around 78.8 years which is below the average for other European and North American countries (80.6 years).
When it comes to the healthcare industry across the U.S, here is how it is driving the economy:
- The average healthcare employee earns $60,976 a year in the US.
Healthcare is the largest source of work in the country, employing one in every eight citizens in the USA, health statistics show. The health industry pays well above the national average, which might be one of the main reasons so many people want to be a part of it. The average employee in this sector earns $60,976 a year, compared to the national average of $47,060.
- The US’s national health expenditure will touch $3.65 trillion in 2019.
The US currently ranks highest in overall healthcare expenditure in the world. According to the latest healthcare in the USA facts and reports, its total spending in 2019 will be $3.65 trillion, which equates to 17.8% of its GDP.
- Healthcare costs are 2 times higher in the US than in other countries.
The US spends double what the rest of the world does on healthcare, largely because of its higher costs for treatments and procedures.
- The US boasts the biggest health industry, consisting of 784,626 companies.
Patient care accounts for $1.068 trillion or 64% of the US’s healthcare revenue. Meanwhile, inpatient care, which includes skilled nursing rehabilitation and non-surgical dental interventions, make up 4.49% and 2.98%, respectively.
- It’s estimated than in 2023 the nation’s spending on health will add up to $4.3 trillion.
When it comes to healthcare spending, the US tops the list, spending 17.8% of the country’s GDP. And this likely won’t be changing anytime soon.
But what is missing from many of these statistics is the patient impact. How does the U.S healthcare industry look in terms of access and affordability?
A quality, well-developed healthcare system is an absolute must. It allows citizens to receive treatment for diseases, illnesses, and injuries, as well as prevent them. If the healthcare system isn’t up to the mark, people might not be able to receive or afford their required treatment. This will ultimately affect a person’s quality of life and lifespan.
People who live in countries with a below-par healthcare system typically have poorer overall health and a shorter lifespan in comparison to those living in countries with a well-developed healthcare system. That said, the quality of healthcare is not directly proportional to the money spent on it.
For instance, statistics on healthcare reveal that the US has the highest infant mortality rate and the lowest life expectancy among other high-income nations, yet it spends twice as much on healthcare per person. Americans spend more on healthcare, not because they use medical devices more, but rather because of the high cost of medical treatment.
Health is a fundamental right, according to the World Health Organization (WHO). This basically means that every person should have access to the required health services without suffering financial hardship.
However, the situation on the ground is starkly different. It’s particularly bad in poor African countries, but the statistics in healthcare show that all is not fine in developing countries as well. For instance, according to a news report, 20% of Americans don’t have the means to access needed health care. Overall, research shows more than half of the world can’t access or afford the healthcare they need.
Outlook on US Healthcare trends.
The main focus of the U.S healthcare industry is based on having more value than volume. The system needs to continually be shifting its attention to saving more lives and getting patients out of the hospital, which is unlike the fee-for-service (FSS) method where having more patients means more revenue for the hospital. In this way the patients turns out to be an expense for the hospital. This is a method that will assist in strengthening the bonds they have with their customers and help boost the nation’s health.
Leaders in the healthcare industry need to work to reshape the future of the care sector as more and more people become aware of the healthcare problems that currently exist and demand change. As it currently stands, the United States does not even rate in the top 10 countries in the world with the best healthcare, which shows massive room for improvement. As we look toward 2020 and beyond, with the potential of new political leadership at the federal level, it remains to be seen how the American healthcare industry can be revolutionized to better serve communities and individuals, while remaining accessible and affordable.
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