28 Astonishing U.S. Healthcare Industry Statistics [2026]: U.S. Healthcare Industry Overview

Research Summary. The U.S. healthcare industry stands as the third-largest sector in the nation, influencing the lives of nearly every American. Despite the significant expenditure on healthcare, which remains the highest globally, many U.S. citizens still bear a substantial portion of these costs. After comprehensive analysis, our data team has concluded the following:

• Healthcare spending constituted 18.3% of the U.S. economy in 2021, translating to $4.3 trillion in revenue.

• 14% of U.S. adults are employed within the healthcare industry.

• An average American couple aged 65 and over requires approximately $315,000 saved for medical expenses during retirement.

• 43.4% of adult Americans are inadequately insured, and 20% lack the financial means to access necessary healthcare services.

• The U.S. ranks as the 35th healthiest country worldwide.

• As of 2023, one-third of U.S. adults had a telehealth visit for themselves or a dependent.

For a deeper understanding, we have categorized the data into the following areas:
Costs | Patient Use and Opinion | Technology

General U.S. Healthcare Industry Statistics

• Healthcare is the third-largest industry in the U.S.

  As of 2021, healthcare spending accounted for 18.3% of the U.S. GDP, increasing from 5% just 60 years prior. This growth is attributed to various factors, including advancements in healthcare treatments and services, improved coverage, and rising prices across multiple sectors, such as:

  • Health insurance

  • Healthcare marketing

  • Pharmaceuticals

  • Healthcare technology

  • Health administration

  While this expansion is beneficial, it raises concerns regarding sustainability as healthcare becomes an increasingly significant component of the economy and government budgets.

• In 2021, healthcare revenue in the U.S. reached $4.3 trillion.

  This equates to $12,914 spent per person on healthcare, marking a 2.7% increase from 2020.

  Projections for 2024 indicate that various healthcare sectors will generate the following profits:

  • Healthcare IT: $27.9 billion

  • Distribution and pharmacies: $18.9 billion

  • Payer: $116.6 billion

  • Provider: $197.8 billion

  • Medtech: $72.1 billion

  • Pharma: $169.9 billion

  

• Approximately one in eight U.S. citizens works in the healthcare industry.

  The U.S. Health Care and Social Assistance sector comprises 907,426 businesses, employs 20 million individuals, and boasts an annual payroll exceeding $1.0 trillion as of 2018, alongside over 1.2 million job openings each year.

  Given the substantial financial flow into the system, jobs in healthcare offer significantly higher wages: the average salary of a healthcare employee in the U.S. stands at $60,976, compared to the national average of $47,060.

  Forecasts suggest that healthcare employment will grow by 15% through 2029 (adding 2.4 million jobs), significantly outpacing the average growth rate for all occupations. By 2030, the U.S. is expected to face around 122,000 unfilled positions for physicians.

  

• Not all healthcare jobs offer salaries above the national average.

  While the aging population is likely to boost future demand for healthcare services, not every role in the sector will experience wage growth.

  For instance, positions such as registered nurses, physicians, and surgeons tend to command higher salaries, while roles in healthcare support, including home health aides and medical transcriptionists, often earn less than the median annual wage of $29,960 (as of May 2020).

• CVS Health Corp. is the largest U.S.-based healthcare company, with annual revenue of $315.2 billion.

  It is followed by UnitedHealth Group and McKesson Corp. Below is the list of the ten largest healthcare companies in the U.S. as of the end of 2022:

  Largest Healthcare Companies in the U.S. by Revenue

  Company	Annual Revenue
  CVS Health Corp.	$315.2 billion
  UnitedHealth Group Inc.	$313.1 billion
  McKesson Corp.	$272 billion
  AmerisourceBergen Corp.	$238.6 billion
  Cardinal Health Inc.	$187 billion
  Cigna Corp.	$180 billion
  Elevance Health	$153.2 billion
  Centene Corp.	$141.6 billion
  Walgreens Boots Alliance	$132.7 billion
  Pfizer	$99.9 billion

• There are approximately 6,210 registered hospitals in the U.S.

  Patients admitted to these hospitals for acute care typically stay an average of 5.5 days.

Healthcare Costs Statistics

• 91.7% of Americans had either private or government health insurance for all or part of 2021.

  From 2020 to 2021, the uninsured population decreased from 28.3 million to 27.2 million.

  However, 43.4% of adult Americans remain inadequately insured, and 20% cannot afford necessary healthcare, contributing to 62.1% of all bankruptcies being caused by high medical bills.

  Consequently, one in four Americans avoid visiting doctors due to the high cost of care.

• As of 2018, 34% of Americans received their health care via government insurance or direct public provision.

  Healthcare’s share of total government spending has doubled over the last three decades, now accounting for 24.1% as of 2018. As of 2019, 18.1% of Americans were covered by Medicare.

  Still, private health insurance represents 31% of healthcare funding in the U.S., with Medicare (21%), Medicaid (16%), and out-of-pocket payments (11%) following.

  

• Employers cover 82% of healthcare costs.

  However, many Americans face significant out-of-pocket expenses. As of 2017, more than one in 50 individuals using the healthcare system incurred costs exceeding $5,000, and one in 200 faced costs over $10,000.

  And what happens when you retire? An average American couple aged 65 and over needs approximately $315,000 saved for medical expenses during retirement.

• Healthcare costs vary significantly across regions in the U.S.

  Costs in the U.S. are approximately twice as high as in other countries, mainly due to expensive specialized treatments and procedures, such as MRIs and hip replacements.

  However, this is not uniform. For instance, healthcare spending per privately insured person can differ threefold across various regions. Even within the same city, prices for the same service can vary widely.

• What are the top 20 most expensive health conditions in the United States?

  20 Most Expensive Health Conditions in the U.S.
  Condition	Average Cost Per Stay
  Heart valve disorders	$41,878
  Acute myocardial infarction (heart attack)	$20,086
  Complication of device, implant, or graft	$19,669
  Coronary atherosclerosis	$19,657
  Spondylosis, intervertebral disc disorders, other back problems	$18,375
  Respiratory failure, insufficiency, arrest	$18,287
  Septicemia	$18,244
  Osteoarthritis	$16,149
  Fracture of neck of femur (hip)	$16,043
  Acute cerebrovascular disease	$15,111
  Rehabilitation care, fitting of prostheses, and adjustment of devices	$13,777
  Complications of surgical procedures or medical care	$13,073
  Biliary tract disease	$11,659
  Congestive heart failure	$11,585
  Cardiac dysrhythmias	$10,110
  Pneumonia	$9,887
  Diabetes mellitus with complications	$9,684
  Chronic obstructive pulmonary disease and bronchiectasis	$8,034
  Mood disorders	$6,275
  Liveborn	$3,529

• In 2021, U.S. healthcare expenditure totaled $4.3 trillion, or 18.3% of the GDP.

  This figure was just over 8% of GDP in 1980.

  By 2028, total expenditures are projected to rise to around $6.2 trillion.

• Healthcare administrative spending represents 8% of the U.S. GDP, in contrast to 3% in other nations.

  The U.S. could potentially save $175 billion in healthcare costs by reducing administrative expenses by half.

• Healthcare and other costs attributable to opioid misuse burden the U.S. with $78.5 billion annually.

  Additionally, alcohol abuse incurs healthcare costs of $27 billion per year, while obesity is linked to 300,000 premature deaths each year.

• U.S. national health expenditures have nearly tripled since 1970.

  Health spending by service or product type includes:

  • Hospital care (31%)

  • Physician and clinical services (20%)

  • Retail prescription drugs (10%)

  • Other health, residential, and personal care services (5%)

  • Nursing care facilities and continuing care retirement communities (5%)

  • Dental services (4%)

  • Home health care (3%)

  • Other professional services (3%)

  • Other non-durable medical products (2%)

  • Durable medical equipment (2%)

U.S. Healthcare Statistics By Patient Use and Opinion

• 61% of Americans do not believe that the U.S. has the best healthcare system in the world.

  The U.S. spends $11,582 in healthcare-related costs per citizen annually, compared to other leading nations such as Switzerland ($8,009), Germany ($5,728), Sweden ($5,511), and Austria ($5,440).

  Despite this financial investment, the U.S. ranks as the 35th healthiest country globally. Furthermore, it has:

  • Lowest life expectancy

  • Highest suicide rates

  • Highest chronic disease burden

  • Highest number of hospitalizations from preventable causes

  • Highest rate of avoidable deaths

  • Lowest survival rate for cervical cancer

  • An obesity rate that is two times higher than ten other high-income countries

  On a positive note, the U.S. also has one of the highest rates of breast cancer screening among women ages 50 to 69, the second-highest rate (after the U.K.) of flu vaccinations among those aged 65 and older, and the highest average five-year survival rate for breast cancer (90.2%).

  

• As of 2017, Americans visit a physician an average of four times per year, which is fewer than in seven other high-income countries.

  This is largely due to the fact that there are only 2.6 physicians for every 10,000 U.S. residents, the lowest rate among ten other high-income countries.

• According to U.S. adults, key factors in healthcare interactions include:

  • Ease of access to care (89%)

  • Privacy (89%)

  • Data security (88%)

  • Personalized care (88%)

  • Proximity of a care provider (85%)

  • Healthcare costs (85%)

  • Coordination among healthcare providers (84%)

  • Ability to monitor personal health (75%)

  • Access to a health coach (68%)

  

• One-third of U.S. adults utilized telehealth services in 2020.

  63% of U.S. adults accessed telehealth for preventive care, prescription refills, or routine chronic illness management.

  During their telehealth visits, over 90% reported satisfaction with video and audio quality, and 80% indicated their primary health issue was resolved during the call. Consequently, 80% expressed a willingness to use telehealth again in the future.

  Nonetheless, a significant portion of the population lacks access to telehealth services, as 35% of rural residents and 42% of older adults cited lack of high-speed broadband as a barrier.

  Considering these factors, the total U.S. telemedicine market is anticipated to reach $22 billion by 2025.

  

Healthcare Technology Statistics

• Effective implementation of IoT-based healthcare technologies could save the U.S. over $300 billion.

  60% of healthcare organizations have adopted Internet of Things (IoT) technology, with patient monitors (64%) and X-ray/imaging devices (41%) being the predominant connected devices.

  Moreover, investment in cloud-based technologies in the U.S. healthcare sector surged by 33% from 2019 ($8.5 billion) to 2020 ($11.36 billion), and 94% of hospitals are currently adopting electronic health records.

  AI applications are poised to be transformative, potentially generating $150 billion in annual savings for the U.S. healthcare economy by 2026.

  However, not all technology implementations yield the same benefits. For example, online symptom checkers currently misdiagnose 66% of the time.

  

• 94% of physicians support improved data interoperability in their organizations, with most (86%) believing the benefits outweigh potential challenges.

  63% of physicians cite burdensome reporting systems as their current major pain point.

  As a result, nearly 59% of doctors assert that enhanced interoperability will enable quicker identification of high-risk patients, while 95% agree it will ultimately improve patient outcomes.

• Increased use of healthcare technology raises security concerns.

  For instance, the U.S. healthcare industry recorded 599 data breaches in 2020.

  California was the state with the highest number of healthcare data breaches in 2020, accounting for 49 incidents. Trinity Health experienced the largest breach, with hackers accessing over 3.3 million records.

U.S. Healthcare Industry Statistics FAQ

1. How much is the healthcare industry worth?

   The healthcare industry is valued at $714.5 billion in the United States as of 2021. An impressive 65% of revenue comes from patient care. For comparison, the global health industry is valued at $12 trillion.

2. What percentage of the U.S. economy is made up of the healthcare industry?

   The healthcare industry comprises 18.3% of the U.S. economy as of 2021. This is significantly higher than most other developed countries, where healthcare typically accounts for no more than 10% of national GDP.

3. Is healthcare the fastest-growing industry?

   Yes, healthcare is the fastest-growing industry. It is the largest and rapidly expanding sector in the U.S. and globally. Employment for healthcare occupations is projected to grow by at least 16% from 2020 to 2030.

   Not surprisingly, the healthcare sector is one of the largest and most complex in the U.S. economy, accounting for 18.3% of the country’s GDP in 2021.

4. Is the U.S. healthcare market efficient?

   No, the U.S. healthcare market is not efficient. The U.S. healthcare system ranks 22nd out of 27 high-income nations for efficiency in converting healthcare spending into extended lives. Denmark ranks first in healthcare efficiency.

   Healthcare market efficiency is assessed by analyzing how much money spent correlates with life expectancy. For instance, every additional $100 spent on healthcare in the United States translates into a gain of less than half a month of life expectancy.

   Conversely, in Germany, every additional $100 spent results in over four months of increased life expectancy.

5. How large is the U.S. healthcare industry?

   The U.S. healthcare industry is the third-largest industry in the U.S. In 2021, 18.3% of the country’s GDP was allocated to healthcare. The industry generated $4.3 trillion in revenue that same year.

Conclusion

The U.S. healthcare industry generates significant revenue across its diverse sectors and employs a substantial portion of the American workforce. It also leverages advanced technologies that are advancing rapidly.

Despite these strengths, a growing number of Americans question the quality of the U.S. healthcare system, reflecting its medical outcomes in comparison to other wealthy countries. Inadequate insurance coverage and the escalating costs of healthcare remain pressing concerns.

Sources

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Author

Chris Kolmar

Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job. His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.