Vital Signs: 2025 Healthcare Update

Healthcare Spending Accelerates Healthcare spending is forecast to grow 5.6% annually through 2032.

GROWTH DRIVERS

• National healthcare spending has grown 4.8% annually over the last 10 years. • Inflationary pressures have impacted healthcare expenditures. Spending is expected to accelerate to 5.6% annually through 2032. • Spending in 2023 was 7.5% stronger year-over-year (YOY), as higher inflation impacted costs. A disinflationary environment is expected to moderate cost increases in 2025, though a robust 5.2% YOY increase is still forecast. • An aging population continues to garner a larger share of national healthcare spending. As of 2020, 37% of total

$8,000

Healthcare Spending Share 65+ Age Cohort

38%

$7,000

37%

36%

35%

35%

$6,000

34%

35% 34%

34% 34%

34% 34%

34%

32%

$5,000

30%

2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

$4,000

healthcare spending, including government and personal, was allocated to the 65+ age cohort.

$3,000

• The 65+ age group is expected to increase significantly through 2032, growing by 20%, while the national population is expected to grow just 5% during the same period. This increase will require additional services and facilities focused on caring for this older population.

$2,000

$1,000

National Healthcare Spending (in $Millions)

$0

2011

2017

2012

2021

2013

2015

2031

2018

2016

2019

2014

2001

2010

2027

2022

2025

2023

2032

2028

2026

2029

2024

2007

2002

2020

2003

2005

2030

2008

2006

2009

2004

2000

Forecast

HC Spend

Source: Centers for Medicare & Medicaid Services (CMS), Cushman & Wakefield Research

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