National Health Expenditures grew by 9.7% to $4.1 trillion in 2020, according to CMS data, and accounted for almost 20% of the nation’s GDP.
COVID-19 and the resulting labor shortages, budget cuts, rising expenses, and inflation fueled the need for the government to step in and offer financial relief to hospitals and health systems. The CARES Act provided $175 billion in emergency funding for hospitals and other healthcare institutions, but it is unlikely there will be more federal aid to come, leaving it up to the states to provide much-needed financial assistance to these organizations.
Researchers for HometoHome.com, a resource for information on health and personal care, examined data from the U.S. Census Bureau to determine which states spend the most on health and hospitals. The following top 10 list comes from their analysis:
10. Utah
Health & hospital spending as a share of total: 12.8%
Total health & hospital spending per capita: $1,289
Total health & hospital spending: $4,190,560,000
Total direct expenditures: $32,812,538,000
9. Iowa
Health & hospital spending as a share of total: 14.0%
Total health & hospital spending per capita: $1,557
Total health & hospital spending: $4,925,808,000
Total direct expenditures: $35,283,924,000
8. Washington
Health & hospital spending as a share of total: 14.0%
Total health & hospital spending per capita: $1,623
Total health & hospital spending: $12,487,009,000
Total direct expenditures: $89,455,201,000
7. Missouri
Health & hospital spending as a share of total: 14.2%
Total health & hospital spending per capita: $1,208
Total health & hospital spending: $7,431,898,000
Total direct expenditures: $52,380,770,000
6. Kansas
Health & hospital spending as a share of total: 15.5%
Total health & hospital spending per capita: $1,561
Total health & hospital spending: $4,548,137,000
Total direct expenditures: $29,333,928,000
5. Mississippi
Health & hospital spending as a share of total: 17.1%
Total health & hospital spending per capita: $1,597
Total health & hospital spending: $4,736,972,000
Total direct expenditures: $27,688,049,000
4. Alabama
Health & hospital spending as a share of total: 18.7%
Total health & hospital spending per capita: $1,687
Total health & hospital spending: $8,302,347,000
Total direct expenditures: $44,406,818,000
3. North Carolina
Health & hospital spending as a share of total: 18.8%
Total health & hospital spending per capita: $1,665
Total health & hospital spending: $17,650,732,000
Total direct expenditures: $93,667,411,000
2. Wyoming
Health & hospital spending as a share of total: 18.9%
Total health & hospital spending per capita: $2,936
Total health & hospital spending: $1,709,488,000
Total direct expenditures: $9,029,287,000
1. South Carolina
Health & hospital spending as a share of total: 19.3%
Total health & hospital spending per capita: $1,787
Total health & hospital spending: $9,326,575,000
Total direct expenditures: $48,273,596,000
Amanda Schiavo is the Finance Editor for HealthLeaders.