Tips & Strategies
Healthcare Industry Forecast
The American healthcare industry is projected to experience an increase in growth as the US population ages and demands for healthcare services rise. According to US Bureau of Labor and Statistics reports, these demands will produce a 3.1 million increase1 in the number of new healthcare jobs by 2029. This growth accounts for about half of the 6 million additional jobs projected during this period nationwide.
BLS forecasts are also positive regarding future financial gains for the industry. These projections suggest gains of 2.9% annually will be made, making it the top powerhouse in gross output amongst all industries1.
Where is the biggest growth expected in healthcare?
Providers of healthcare related services are projected to benefit the most from sizable growth over the next few years. Ambulatory healthcare services, medical and diagnostic laboratory services, and home healthcare service providers are set to make notable gains, as demand for these services continue to increase for older Americans requiring more complex healthcare services1. These needs are also driving significant growth in Physician offices and outpatient care centers where many patient visits, diagnostic labs, and procedures are regularly performed.
Healthcare related professions are projected to have the highest employment rates amongst all industries, with estimates citing 1.4% in overall annual growth1.
- Healthcare Practitioners- Healthcare provider shortages are powering strong growth amongst Advanced Practitioners with Nurse Practitioners and Physician Assistants set to grow by 52% and 32% respectively.
- Personal Care Occupations- Healthcare support occupations are forecasted to grow by 22%, with strong growth amongst occupational therapy assistants 34%, home health care aids 33%, and physical therapy aides 21%.
- Counselors- Demands for counseling care in the areas of substance use, mental health, and genetic counseling are also set to rise as America adapts to psychiatric care shortfalls, the opioid crisis, and greater reliance on genetic technologies.
- Medical & Health Service Managers- Professionals working in healthcare management fields are projected to experience a 31% gain in employment as expanding healthcare markets require their services.
The COVID Effect
It is too early to be sure what long-term effects the COVID virus will have on the future of healthcare in America, but factors are indicating it may not be positive. Findings from an American Hospital Association report suggest that healthcare organizations in America will continue to lose $20.1 billion dollars a month through December, bringing the total financial losses due to COVID-19 in at around $323 billion for 20202. The lion share of these loses are being ascribed to decreased patient loads, care related expenditures (PPE, ventilators, medications), uncompensated care, and labor costs.
1.Kevin S. Dubina, Janie-Lynn Kim, Emily Rolen, and Michael J. Rieley, "Projections overview and highlights, 2019–29," Monthly Labor Review, U.S. Bureau of Labor Statistics, September 2020, https://doi.org/10.21916/mlr.2020.21.
2.American Hospital Association. New AHA Report Finds Losses Deepen for Hospitals and Health Systems Due to COVID-19 https://www.aha.org/issue-brief/2020-06-30-new-aha-report-finds-losses-deepen-hospitals-and-health-systems-due-covid-19