July 2026 Health Sector Economic Indicators Briefs

Altarum's monthly Health Sector Economic Indicators (HSEI) briefs analyze the most recent data available on health sector spending, prices, employment, and utilization. Below are highlights from the July 2026 briefs.

Health spending growth rate slowed gradually in recent months

• In May 2026, national health spending grew by 6.0%, year over year, equal to its April 2026 growth rate and somewhat lower than its growth rate over the previous two years.
• GDP grew by 6.1% in May, year over year, but its level fell slightly from its April value. As a result, national health spending in May rose to 18.4% from 18.2% in April. National health spending was last below 18% of GDP in July 2024.
• Year-over-year growth in personal health care spending was 5.8% in May, year over year, down from 7.4% in May 2025.
• Growth among major spending categories was highest for dental services, at 9.9%, year over year, while spending for prescription drugs grew the slowest, at 3.6%. 

Prescription drug prices continue to decline

• In June 2026, the overall Health Care Price Index (HCPI) stood at 2.8%, equal to its May value.
• Economy-wide inflation declined in June, with year-over-year change in the overall Consumer Price Index (CPI) decreasing by 0.7% from May’s value of 4.2% to 3.5%; the Producer Price Index (PPI) decreased by 0.5% to 5.5%.  
• Among the major health care categories, prices for dental care in June were the fastest-growing at 7.0%, year over year. This is an increase from a growth of 2.4% in June of 2025. At the other extreme, prescription drug prices fell by 2.5%—their sixth straight month of lower year-over-year prices.
• For major payers, year-over-year Medicare prices growth for services (3.3%) exceeded private insurance (2.2%) and Medicaid (1.9%).  
• The implicit measure of health care utilization growth was 3.0% year over year in May, up slightly from the April value of 2.9% (June data are not yet available).
• Among major spending categories, home health care utilization increased the fastest, at 5.8%, followed by prescription drugs, at 5.6%. Utilization of dental services grew the slowest, at 1.4%. 

Health care job growth has declined in the past four months; inflation outpaces wage growth

• In June 2026, health care industry employment increased by 21,500 jobs while non-health care industries increased by 35,500 jobs.
• By major subsector, June’s health care job growth was led by hospitals, which added 9,200 jobs, followed by ambulatory health care services, which added 8,000. Nursing and residential facilities added 4,300 jobs.
• The hiring rate was 3.2% and the job opening rate 4.2% in May. The total separations rate was 3.2%.
• The unemployment rate was 4.2% in June, down 0.1% from the previous month.
• Nominal health care wage growth in May 2026 was 2.1% year over year, with growth rates of 2.3% in hospitals, 1.9% in ambulatory health care services, and 3.1% in nursing and residential care facilities.