April 29, 2012
By: John Rossheim, Senior Contributing Writer
Guess what? Healthcare spending grew less than 4 percent annually in 2009 and 2010, the lowest rate in more than half a century, according to new numbers from the Centers for Medicare and Medicaid Services, as reported in The New York Times. The portion of the US economy comprised by healthcare stood steady at 17.9 percent of GDP.
The causes of this leveling off are diverse and at least one of them is nothing to celebrate: Many Americans who have lost their jobs are buying less healthcare because they’ve lost their insurance. But some experts believe that various pressures to hold down increases are beginning to bend the cost curve downward, a trend that almost everyone will welcome.
What are the implications for healthcare hiring and recruitment? Hard to say, but less money flowing into the system certainly won’t make healthcare compensation negotiations any easier.