Spending and Labor

McKnight’s had an article on spending in nursing homes. Nursing home care and home health care were two of the fastest-growing fields of healthcare spending in 2023 according to Altarum’s monthly Health Sector Economic Indicators brief.  Data shows that overall national health spending increased by 6.2% for the entire year, gross domestic product increased by 6.3%, personal healthcare spending grew by 7.7%, home healthcare spending by 10.7% in 2023, and nursing home care increased by 9.8%.

The rise in percentages in both sectors results from increased utilization and higher healthcare prices. Research director of health economics and policy at Altarum said, “Conversely, increases in prices were a greater factor in the increases in nursing home care spending,” and “Price growth for nursing home care averaged 5.8% in 2023, while price increases averaged a more modest 4.4% for home healthcare services.”

In January 2024, healthcare employment increased by 70,300 jobs overall, greater than the 12-month average of 58,700. This growth was led by expansion in ambulatory care settings, which added 33,400 jobs, and hospitals, which added 20,400. In just January, nursing and residential care facilities added 16,500 total jobs, and home healthcare added 15,100.

With the continuous growth of the nursing home and home healthcare sectors, employment in these sectors has remained above average in 2024.
This rapid growth is related to the provider’s effort to manage increases in care use. The article states:

“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.”