A new report from the Maryland Comptroller paints a detailed picture of just how central the healthcare industry has become to Maryland’s economy. The report warns that rising costs, workforce shortages, and federal policy changes could create significant challenges for Maryland.
In a press release from the Comptroller’s Office, the report, Maryland Industry Analysis: Health Care & the Economy, finds that healthcare and social assistance are now Maryland’s largest industry, supporting roughly 427,000 jobs, which is about 16% of all employment statewide. Healthcare ranks as the top industry in 10 counties and remains one of the five largest industries in every county across the state.
The report cautions that rapid growth in the healthcare sector is not necessarily a sign of a stronger economy. While the industry continues to generate jobs and economic activity, rising healthcare costs are consuming a growing share of budgets for not only households but also for employers and governments.
From the press release:
Health care costs have risen faster than most other goods and services, driven by rising labor and input costs without corresponding productivity gains. Because health care demand is not discretionary, rising costs create a “crowding out” effect, reducing the ability of governments, employers, and individual households to invest in other priorities, such as housing, education, and economic development.
The report identifies several major pressures facing the industry, including workforce shortages and changes to federal policies, such as immigration policies and proposed cuts to Medicaid and Medicare. Nursing shortages and growing demand for home health aides remain especially significant concerns as Maryland’s population ages.
Read the report: Healthcare and the Economy.