Press Release

Provided by Healthcare of Today, Inc.

It is during trying financial times that the foundations of our economy are tested; and the strongholds become immediately apparent. For years healthcare has been touted as the “the beating heart of America’s economy,” and now we can see the many reasons why.

While layoffs are rampant across industries, the health job market is not just strong, but booming. In fact, nine out of 20 occupations with fastest growth are in the medical/healthcare fields. September 2008, at the peak of financial crisis nationwide, the Bureau of Labor and Statistics again reported that the healthcare sector had felt continued growth, increasing by 17,000 jobs. For the previous year it had a steady growth average of 30,000 jobs/ month. Within the current framework, the Bureau of Labor and Statistics predicts it to be a leading growth sector, with conservative estimates of 3 million jobs predicted to grow between now and 2016, the most of any industry.

There are many reasons for this optimism. Our nation faces a growing elderly population, a trend of growth forecasted to continue for 50 years and a population often requiring delicate care. The fact that many “Boomers” will be retiring with sizeable savings indicates that they may have unprecedented choices in their healthcare options as well. Across the spectrum, the future is promising. Patients are experiencing increased longevity courtesy of infection control, less invasive surgical methods, innovative therapies, and more. Advanced medical techniques for diagnosis and treatment have led to higher survival rates for trauma victims and the severely ill. The implications of this are that, as ill patients live longer lives, they require extensive care and support personnel which only the healthcare industry is equipped to provide. The Bureau of Labor Statistics currently estimates that from 2004-14, the total employment of home health aides is projected to increase by a whopping 56 percent. Business Week claims that “if trends continue, 30-40% of new jobs in the next 25 years will be in health care… the biggest worry is that demand for health care will absorb too much of the workforce and squeeze out other types of jobs.”

The growth in workers is just one contributor to the projected income for the industry. The Washington Post reports that “Spending on health care in the United States could double by 2017, reaching $4.3 trillion and accounting for 19.5 percent of the nation's gross domestic product…” This growth is expected to be steady, ‘Our expectation is that growth in health spending is expected to be steady over the projection, which is 2007 through 2017, at 6.7 percent per year,’ reports co-author Andrea Sisko, an economist with the Centers for Medicare and Medicaid Services…”

At the same time as they have reason to be optimistic, healthcare companies are aware that they operate in a time of heightened cost awareness just as any industry should. Hospitals may be feeling this crunch more, as patients are increasingly being discharged earlier, and “whenever possible”, inpatients are signed out as outpatients. For a variety of reasons, non-hospital healthcare environments are being explored by many, as are a range of nursing and in-home facilities or day care for elderly patients.

Some of the reason for confidence in the continued growth of this sector is that it’s not seasonal; on the contrary, healthcare is a “round-the-clock” business. In contrast to many other sectors, it remains highly labor intensive; even advanced technology requires human oversight and operation. Furthermore, in contrast to many industries, there is little “leakage” of jobs abroad; outsourcing is rare.

In these many ways healthcare is and will continue to be a supporting column of the American economy. As our lives get longer we will continue to discover the widths of our healthcare needs and capabilities. For now, this speeding train shows no sign of slowing.

SELECTED RESOURCES:
http://www.denverpost.com/healthcare/ci_9582637
Mandel, Michael with Joseph Weber, “What’s really propping up the economy?”, Business Week, September 25, 2006.
Bureau of Labor Statistics website, bls.gov

US Department of Labor, Employment & Training Administration website
Reinburg, Steven, “U.S. Health Care Spending to Double by 2017, Report Predicts”, Washington Post, February 26, 2008.

This report is a synthesis of data and information currently available from the sources cited and others. Healthcare of Today, Inc. makes no representations as to the validity of these statistics, and offers this synthesis of their findings solely for educational purposes.