ARIZONA NEWS

Arizona’s health care sector growing at rapid pace with demographics playing a role

Aug 8, 2023, 4:35 AM | Updated: 8:20 am

Medical professional taking blood pressure (Pexels)...

Medical professional checking blood pressure (Pexels)

(Pexels)

PHOENIX — Arizona’s health care sector is incredibly important to the state’s economy, and a new report finds it’s expected to keep growing.

That report was done by the Common Sense Institute, which measured the industry’s impact.

“The health care sector is the largest single sector in the state,” CSI Research Director Glenn Farley said in an interview with KTAR News 92.3 FM. “It’s between 10-20% of the state’s total economy.”

CSI also projected the ways the sector will continue to develop in the coming years.

“Based on the data we’ve seen and the modeling we’ve done, the sector is poised to grow significantly faster – about 50% faster – than the state’s overall economy over the next decade or so,”Farley explained.

“We’re forecasting it’s going to grow at about a 3% [per year] rate… the Arizona economy’s growth rate is about 2-2.5% per year, and we expect that to continue as well.”

He added while that rate could slow slightly, health care is expected to continue its fast upward trend.

Demographics influencing Arizona’s health care sector

What’s behind that expected growth? Farley said they found demographics are a big factor.

Older people require more health care, and Arizona’s pre-existing reputation as a destination for retirees is just the start.

“Arizona has a large population that’s 65 and older,” Farley said, “and that population group is poised to grow faster than any other population group due to the ongoing demographic transition that the United States is currently embarking on.”

This growth could present some challenges for Arizona, however.

“Growth can slow, even as demand takes off,” Farley explained, “or the health care sector can find a way to grow consistent with the demand, in order to keep costs manageable while providing the goods and services people demand.”

To keep the health care sector growing along with rising demand, Farley said he believes shoring up the workforce is essential – and doing it early.

“If you’ve got a rapid increase in demand, you can’t rapidly scale up the workforce,” he said. “You can’t just put out ‘help wanted’ ads… [health care workers] need significant background training and licensing. That restricts the pipeline for adding new workers.”

Farley also added that tackling rising administration expenses will also be important to sustainable growth.

With the health care industry poised to keep expanding, Farley stressed its influence in Arizona will keep growing too.

“About 20% of the state’s economy is either directly or indirectly dependent by the state’s health care sector,” he recalled. “It’s really remarkably large.”

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

north-korean-fraud...

Nick Borgia

Arizona woman accused of involvement in major North Korean fraud scheme

An Arizona woman is being prosecuted for allegedly assisting in North Korean fraud schemes to place overseas IT workers in U.S. positions.

51 minutes ago

Peoria wants to build out a future airpark similar to the Scottsdale Airpark, pictured here, with a...

Audrey Jensen/Phoenix Business Journal

Peoria Airpark project could create thousands of jobs, millions in revenue

Plans for a new regional airport and employment center in Peoria could generate nearly 8,000 jobs and millions of dollars in revenue for the municipality, according to a study released this month.

4 hours ago

Authorities released these images from a 2022 assault in Gilbert in January 2024. An arrest was mad...

KTAR Video

Video: SHORT: Why are prosecutors cutting deals with youth violence suspects and alleged Gilbert Goons?

Some of the young adults arrested in connection with violent gang-related attacks in the East Valley are getting deals from prosecutors. Chris Merrill shares his thoughts.

5 hours ago

...

KTAR Video

Video: Why are prosecutors cutting deals with youth violence suspects and alleged Gilbert Goons?

Some of the young adults arrested in connection with violent gang-related attacks in the East Valley are getting deals from prosecutors. Chris and Joe wonder how victims and others experiencing youth violence feel. Video: Jeremy Schnell and Felisa Cárdenas/KTAR News

5 hours ago

The fire was so large it could be seen from the freeway. (Arizona Department of Transportation phot...

Serena O'Sullivan

Surprise police say home where father shot 6-month-old baby now on fire

A man was accused of shooting his baby in a Surprise residence he broke into on Friday. A fire later broke out in the house, officials said.

5 hours ago

Valley hospital AI: New tools to diagnose strokes and seizures...

KTAR.com

Valley hospital uses artificial intelligence to diagnose strokes and seizures

A new Valley hospital AI tool is being used to diagnose strokes and seizures in Arizona patients, officials said on Thursday.

6 hours ago

Sponsored Articles

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

Arizona’s health care sector growing at rapid pace with demographics playing a role