Health Services

The U.S. health services industry constitutes a major component of the national economy, representing approximately 10.7 % of non‑farm payroll employment and about 6.5 % of GDP as of 2022 for private community hospitals alone. Hospitals and health systems have become a critical labour‑intensive sector, yet productivity in private community hospitals declined by 2.0 % in 2022 due to a small increase in hours worked (+0.3 %) and a decline in output (−1.6 %).

Overall healthcare spending continues to surge. The industry is projected to grow its EBITDA at roughly a 7 % compound annual growth rate to reach approximately US$987 billion by 2028, up from about US$676 billion in 2023. This growth reflects post‑pandemic recovery of provider margins, a shift toward outpatient care, value-based models, and amplified demand from ageing populations.

Workforce pressures and operational complexity are mounting. Hospitals facing social and financial barriers — “essential hospitals” — deliver a disproportionately high share of emergency and outpatient visits and are increasingly adopting telehealth, remote-monitoring, and AI tools to meet demand and manage costs.