Healthcare Staffing Report: Sept. 3, 2015

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Health expenditures to rise

According to recently released data from the US Department of Health and Human Services, overall growth in health expenditures is projected to accelerate to an average of 5.8% per annum from 2014 to 2024, a sharp increase from the levels seen from 2008 to 2013. The projection is a bullish long-term indicator for healthcare demand, a favorable trend for healthcare staffing.

Fig A. Year-over-year growth in National Health Expenditures (NHE)

2009 - 2013 Estimates

2014 - 2024 Projections

Source: US Department of Health and Human Services

The projected acceleration in health expenditures is largely due to an increase in the number of insured because of the Affordable Care Act. As increased health expenditures typically drive greater demand for healthcare staffing, this explains the current strength in the healthcare staffing market. We expect the healthcare staffing market to remain robust as supply catches up to elevated levels of demand.