Healthcare Industry ForecastClint Rosser, CEO

The American healthcare industry is projected to experience continued expansion as the U.S. population ages and demand for healthcare services rises. According to the U.S. Bureau of Labor Statistics (BLS), healthcare employment is expected to grow 13% from 2022 to 2032, much faster than the average for all occupations, adding approximately two million new jobs. This growth underscores the ongoing need for skilled healthcare professionals across various sectors.

Financial Gains

BLS forecasts indicate strong financial growth within the healthcare sector. By 2032, healthcare-related spending is expected to increase at an annual rate of 5.4%, outpacing many other industries. This expansion makes healthcare one of the largest contributors to the U.S. economy, with projected annual expenditures surpassing $6.8 trillion by 2032.

Where is the biggest growth expected in healthcare?

Providers of healthcare related services are projected to benefit the most from sizable growth over the next few years. Ambulatory healthcare services, medical and diagnostic laboratory services, and home healthcare service providers are set to make notable gains, as demand for these services continue to increase for older Americans requiring more complex healthcare services₁. These needs are also driving significant growth in Physician offices and outpatient care centers where many patient visits, diagnostic labs, and procedures are regularly performed.

Employment Gains

Healthcare-related professions are projected to experience the highest employment rates among all industries, with an estimated annual growth of 1.4%. Key areas of employment expansion include:

1. Advanced Practitioners

Nurse Practitioners (NPs): Expected to grow by 45% due to increasing primary care needs.

Physician Assistants (PAs): Projected to grow by 27% in the next decade.

2. Personal Care & Healthcare Support Roles

• Home Health Aides: Expected growth of 22%, fueled by aging populations and home care expansion.

• Physical Therapy Assistants: Projected to grow 20% as rehabilitative care becomes more essential.

3. Mental Health & Counseling Professions

• Substance Abuse and Mental Health Counselors: Demand is expected to rise 18% due to the ongoing opioid crisis and psychiatric care shortages.

• Genetic Counselors: Growth of 16% as genetic testing becomes more common.

4. Medical & Health Services Managers

• Projected 28% job growth as healthcare facilities expand and require more administrative oversight.

The COVID Effect

The long-term effects of COVID-19 on the healthcare industry are still unfolding, but some trends are clear:

• Financial losses: The American Hospital Association reported that U.S. hospitals and health systems lost approximately $320 billion in 2020 due to decreased patient loads, higher operating costs, and labor shortages.
• Workforce challenges: Many healthcare workers left the field due to burnout, leading to a persistent shortage of physicians, nurses, and support staff.
• Telemedicine expansion: The pandemic accelerated the adoption of virtual healthcare, with telehealth visits increasing by over 600% compared to pre-pandemic levels.

The U.S. healthcare industry is undergoing rapid growth, particularly in outpatient care, home health services, and advanced practitioner roles. However, financial challenges and workforce shortages remain pressing concerns. For healthcare recruiters, sourcing qualified physicians and specialists will be critical in sustaining this growth.

To stay ahead of industry trends and secure top healthcare talent, recruitment professionals can benefit from comprehensive sourcing solutions like those offered by PracticeMatch. Explore our physician database, virtual career fairs, and recruitment marketing services to connect with top candidates today.

*Originally posted on 11/25/2020. Last updated on 12/12/2024.