Growth in Health Services Spending Declines


Growth in Health Services Spending Declines

The coronavirus pandemic resulted in a sharp decrease in spending on health services because of social distancing and the delay or cancellation of elective procedures, notes the Peterson Center on Healthcare and the Kaiser Family Foundation, nonprofits that partner to produce the Peterson-KFF Health System Tracker.

In the second quarter of 2020, health services spending fell by 8.6% compared with the second quarter of 2019. Although health services spending increased 1.3% in the third quarter of 2020 compared with the same time in 2019, year-to-date health services spending through the third quarter of last year fell by 2.4% compared with the first three quarters of 2019.

The Health System Tracker examined recent National Health Expenditure data from the Centers for Medicare & Medicaid Services to create the chart, noting, however, that it doesn’t include information on prescription drugs, medical equipment and other health-related spending that isn’t considered services.