Health Facts

The US Healthcare Crisis
  • Nearly 1 in 2 American adults live with at least one chronic illness (CDC, 2012)
  • The United States is the only wealthy, industrialized nation that does not have a universal healthcare system
  • The U.S. spends almost $8,600 per capita on healthcare, 30% higher than the closest industrialized country (World Bank, 2013)
  • Among advanced economies, the U.S. spends the most on healthcare on a relative cost basis with the worst outcome (Bloomberg, 2013)
  • 17% of children and adolescents are obese – triple the rate from just one generation ago (CDC, 2012)
  • The majority (68%) of adults over 20 are obese or overweight (CDC, 2012)
  • Life expectancy at birth in the United States is an estimated 78.62 years, ranking 51st globally (CIA Factbook, 2013)
  • There are between 210-410k deaths due to to medical errors per year, making medical errors the third-leading cause of death in the U.S., after heart disease and cancer (Journal of Patient Safety, 2013)
The US Health Spending
  • Total U.S. health expenditures is $2.8T (2013) and is expected to rise to $4.8T by 2021 (CMS); about $2.2T is spent on personal healthcare, while the remainder is spent on investment (e.g. R&D), health insurance administration, and public health
  • The U.S. spends almost 18% of its GDP on healthcare, higher than any other developed nation and more than eight percentage points higher than the worldwide average of 9.3% (OECD, 2013)
  • Hospital care, physician, and other clinical services make up about 51% of all health spending ($1.3T) (CMS)
  • Prescription drugs make up about 10% of all health spending ($259B) (CMS)
  • Of the $2.2T in personal healthcare expenditures, Medicare and Medicaid finance $525B and $400B respectively, or more than 40% of healthcare (CMS)
  • Private health insurance finances around $850B of personal healthcare expenditures (38%), while consumers finance only about $300B out-of-pocket (less than 15%) (CMS)
  • Around 30% of all healthcare spending in the U.S. or more than $750B per year is wasted (IOM, 2013)
  • Seniors account for 36% of total costs, at $1.01 trillion, but are only 13% of the U.S. population (Deloitte, 2012)
  • 75% of all healthcare dollars are spent on patients with one or more chronic conditions, many of which can be prevented, including diabetes, obesity, heart disease, lung disease, high blood pressure, and cancer (CDC)
  • An increasing number of U.S. businesses are less competitive globally because of ballooning healthcare costs  (Council on Foreign Relations, 2012)
US Healthcare & Technology
  • 73% of physicians believe that HIT will improve the quality of care provided in the longer term – higher among physicians with 10 or less years in practice (81%) and those in larger practices (80%) (Deloitte, 2013)
  • 43% of physicians use mobile health technology for clinical purposes (Deloitte, 2013)
  • The United States lags behind other countries by as much as a dozen years in its efforts to implement HIT (Commonwealth Fund, 2006)
  • Full implementation of health IT systems could produce efficiency savings as great as $77 billion per year after a 15-year adoption period (RAND, 2005)
  • 44% of hospitals have adopted Electronic Health Records, an increase of more than 17 percentage points since 2011 and nearly tripling since 2010 (RWJF, 2013)
  • 40% of office-based physicians have adopted Electronic Health Records (RWJF, 2013)
  • The number of hospitals using health information technology has more than doubled in the last two years  (HHS, 2012)
  • The number of health IT jobs in the US is expected to increase by 20 percent from 2008 to 2018 (HHS, 2012)
  • The U.S. health IT market is forecast to grow at a CAGR of around 24% from 2012 to 2014 (RNCOS, 2011)
Mobile Health
  • Wireless penetration in the US is 104.6% (CTIA, 2011)
  • 104 million people in the U.S. own smartphones (comScore, 2012)
  • About 50% of smartphone users download apps (comScore, 2012)
  • Mobile Healthcare and medical App downloads will reach 44 million in 2012, rising to 142 million in 2016 (Juniper 2012)
  • 84% of doctors use tablets – 74% iPad, 10% other (MobiHealthNews, April 2012)
  • McKinsey projects opportunities in global mHealth to be $60 billion
  • 19% of Smartphone Users Have Health Apps (Pew Report, 2012)
  • 69% of US adults are willing to communicate with providers by email. However, only 49% are interested in communicating via online chat or web portal, 45% by text message, and 40% by mobile health applications (PWC, 2013)
  • 58% of CIOs say their company has not developed a mobile application for customers and clients and has no plans to offer one in the next year (Robert Half Technology, 2014)
  • 36% of healthcare companies have no mobile technology strategy currently (Robert Half Technology, 2014)
  • 59% of physicians and insurers believe widespread adoption of mobile health applications in the near future is unavoidable (PWC, 2012)
The Role of the Internet
  • Between 70-75% of U.S. adults look online for health information, most of whom (77%) begin their pursuit on search engines such as Google, Bing, or Yahoo. 13% begin at sites like WebMD that specialize in medical information (IMS, 2014)
  • 39% of U.S. adults have read someone else’s commentary or experience about health or medical issues on an online news group, website, or blog  (Pew Internet, 2013)
  • 18% of U.S. adults have consulted online reviews of particular drugs or medical treatments, compared to 24% in 2010  (Pew Internet, 2013)
  • 16% of Internet users have gone online to find others who might have health concerns similar to theirs. People living with chronic and rare conditions are significantly more likely to do this (Pew Internet, 2013)
  • Physicians spend twice as much time using online resources as compared to print, when making clinical decisions (IMS, 2014)
  • Nearly 50% of U.S. physicians who use the web for professional purposes consult Wikipedia for information, especially on specific conditions (IMS, 2014)
Caregivers & Home Health
  • Remote patient-monitoring devices have the fastest-growing revenue of any medical device sector (Kalorama Information, 2011) and are predicted to save the world’s healthcare systems up to $36B by 2018 (Juniper, 2013)
  • Between 29-52 million unpaid caregivers provide care to someone age 18 and older who is ill or has a disability (NHPF, 2013)
  • Nine in ten caregivers own a cell phone and one-third have used it to gather health information (Pew Internet, 2013)
  • 59% of caregivers with internet access say that online resources have been helpful to their ability to provide care and support for the person in their care  (Pew Internet, 2013)
  • Eight in ten caregivers have access to the Internet. Of these, 88% look online for health information, outpacing other Internet users (Pew Internet, 2012)
  • Caregivers are more likely than other internet users to take advantage of social tools related to health (Pew Internet, 2012)
  • The vast majority of patients (90 percent) want to self-manage their healthcare leveraging technology, such as accessing medical information, refilling prescriptions and booking appointments online (Accenture, 2012)
  • In 2011, annual expenditures for home healthcare were projected to be $86.8B by 2014 (CMS, 2011)
 The Business of Healthcare
  • The North American HCIT market is forecast to grow at a CAGR of 7.4% to reach $31.3B by 2017 (RnR Market Research, 2013)
  • 76% of Fortune 50 companies are in the health industry or have a health division (PWC, 2011)
  • Digital health funding reached $4.1B in 2014. Deal size grew 40% since 2013 and total funding grew 124% year over year. (Rock Health, 2014)
  • The digital health industry surpassed total medical device venture funding in 2014. (Rock Health, 2014)
  • Six themes represent nearly 44% of all funding, with analytics and big data topping the charts in 2014.  (Rock Health, 2015)