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Healthcare Spending Continues to Rise Even in Ailing Economy

By Amber McGraw Walsh on February 10, 2010
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The National Health Expenditure Accounts (NHEA) are published by the Centers for Medicare and Medicaid Services (CMS) and are the official estimates of total national healthcare spending.  CMS began releasing the NHEA in 1960. The NHEA measures annual U.S. expenditures for healthcare goods and services, public health activities, program administration, the net cost of private insurance, and research and other investment related to healthcare. The data are presented by type of service, sources of funding and sponsors.

According to CMS, U.S. healthcare spending continued to grow in 2008, increasing 4.4 percent compared to 6.0 percent in 2007. This increase was the lowest in healthcare spending since 1980. Total health expenditures reached $2.3 trillion, which translates to $7,681 per person or 16.2 percent of the nation’s Gross Domestic Product (GDP). Data for 2009 has not yet been released.

Through its Office of the Actuary, CMS releases each year projections of healthcare spending for those same categories as are measured in the NHEA.

An overview of NHEA and projection methodologies can be found on the CMS website as well as NHEA historical data. Also available from CMS are the actuarial projections .

Photo of Amber McGraw Walsh Amber McGraw Walsh

Amber Walsh is the former Chairwoman of McGuireWoods LLP’s Healthcare department, one of the largest healthcare practices in the United States. She is also a recognized leader in promoting the advancement of women in the private equity sector. Focusing her practice on corporate…

Amber Walsh is the former Chairwoman of McGuireWoods LLP’s Healthcare department, one of the largest healthcare practices in the United States. She is also a recognized leader in promoting the advancement of women in the private equity sector. Focusing her practice on corporate healthcare transactional work and regulatory matters, she represents healthcare providers such as hospitals, health systems, dialysis facilities, multi- and single-specialty medical practices, specialty hospitals, ambulatory surgery centers, and a variety of healthcare industry entrepreneurs, in sales and acquisitions, joint ventures, general corporate matters, contracting, securities, and regulatory matters.

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  • Posted in:
    Health Care and Life Sciences
  • Blog:
    The Healthcare Investor
  • Organization:
    McGuireWoods LLP
  • Article: View Original Source

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