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U.S. healthcare spending is projected to reach $5.9 trillion in 2026, up from $5.3 trillion in 2024, when the sector accounted for 18.0% of GDP. CMS projects the sector will grow at an average of 5.4% annually through 2034, consistently outpacing overall U.S. economic expansion.
The data below draws from federal health expenditure accounts and lending market benchmarks to show where healthcare funding stands heading into the second half of 2026. Each section moves from broad sector economics to the specific capital decisions facing practices today.
Key Takeaways
- U.S. healthcare spending reached $5.3 trillion in 2024 and is projected to exceed $5.6 trillion in 2025.
- Healthcare added 410,700 jobs since January 2025, nearly double the net job gain across the entire U.S. economy.
- Alternative lenders approve 65% to 72% of healthcare business loan applicants, compared to 45–55% at traditional banks.
- Healthcare AI attracted nearly $18 billion in venture capital in 2025, representing 46% of all healthcare investment.
U.S. Healthcare Spending by Category (2024)
National health expenditure data from the Centers for Medicare & Medicaid Services provides the clearest measure of where healthcare dollars flow. The table below presents 2024 spending across all major categories, along with the annual growth rate for each.
Total 2024 spending, in U.S. dollars. Orange figure shows year-over-year growth.
| Spending Category | 2024 Total | Year-over-Year Growth |
|---|---|---|
| Total National Health Expenditure | $5.3 trillion | +7.2% |
| Private Health Insurance | $1,644.6 billion | +8.8% |
| Hospital Expenditures | $1,634.7 billion | +8.9% |
| Medicare | $1,118.0 billion | +7.8% |
| Physician & Clinical Services | $1,109.7 billion | +8.1% |
| Medicaid | $931.7 billion | +6.6% |
| Out-of-Pocket Spending | $556.6 billion | +5.9% |
| Prescription Drug Spending | $467.0 billion | +7.9% |
Key Insights:
- Private health insurance surpassed Medicare in total spending ($1.64 trillion vs. $1.12 trillion), making commercial insurance the dominant revenue driver for most physician practices and outpatient facilities.
- CMS projects NHE growth to average 5.4% annually through 2034, pushing the health spending share of GDP from 18.0% in 2024 to 20.6% by 2034. Sustained growth at this pace supports long-term capital investment across the sector.
Healthcare Workforce Growth (2025–2026)
No sector has contributed more to U.S. employment over the past 18 months than healthcare. Our analysis below draws from Revelio Labs' Public Labor Statistics data and BLS monthly releases to show where hiring growth originates and what practice owners should expect.
| Metric | Data |
|---|---|
| Jobs added in healthcare since January 2025 | 410,700 |
| Healthcare share of total U.S. net job growth (Jan. 2025 through May 2026) | Nearly 2x the entire economy combined |
| Healthcare jobs added in May 2026 | 35,000 |
| Share of new positions from small practices and clinics | ~50% |
| Projected annual healthcare job openings through 2034 | ~1.9 million |
| Median annual salary across healthcare occupations | $83,090 |
Key Insights:
- Nearly half of all new healthcare positions originated from small practices and clinics, reflecting a genuine increase in medical capacity through physician visits and hands-on clinical care.
- Baby boomer demographics sustain continued demand: per-person healthcare spending for adults 65 and older ($22,356) is more than twice that for working-age adults ($9,154), and all baby boomers will qualify for Medicare within the next several years.
Healthcare Business Lending Benchmarks (2026)
Healthcare business owners seeking capital enter a lending market shaped by predictable reimbursement cash flows. The benchmarks below draw from Crestmont Capital's 2026 healthcare lending analysis, which aggregates Federal Reserve Small Business Credit Survey data across medical practice categories.
Share of healthcare applicants approved, by lender type.
| Metric | Data |
|---|---|
| Healthcare share of total U.S. small business loan applications | ~13% |
| Approval rate with alternative lenders | 65–72% |
| Approval rate at traditional banks | 45–55% |
| Average loan size: small primary care clinics | ~$75,000 |
| Average loan size: specialty and multi-location practices | $500,000+ |
| Most common loan terms | 24–60 months |
| Equipment financing share of healthcare loan volume | ~38% |
| Working capital share of healthcare loan volume | ~29% |
| Practice acquisition and expansion share | ~22% |
| Healthcare borrowers using non-bank lenders | 60%+ |
Key Insights:
- Alternative lenders approve healthcare applicants at rates 10 to 27 percentage points higher than traditional banks, largely because insurance reimbursements provide predictable, recurring cash flow that reduces perceived credit risk.
- Equipment financing accounts for the largest share of healthcare loan volume, driven by demand for diagnostic technology upgrades and procedure-specific tools that expand patient capacity.
Healthcare Capital Markets and Technology Investment (2025)
Large health systems and private equity-backed platforms access capital through bond markets and venture investment. Both trends shape the broader financial environment for healthcare businesses at every scale. In our analysis below, the data reflects 2025 activity and current 2026 projections.
| Metric | Data |
|---|---|
| Total healthcare bond issuance (2025) | ~$50 billion |
| Year-over-year change in bond issuance | +34% |
| Variable-rate debt issuance by healthcare borrowers (2025) | ~$14 billion |
| Year-over-year change in variable-rate issuance | Nearly double 2024 levels |
| Healthcare AI VC investment, U.S. + Europe (2025) | ~$18 billion |
| AI share of all healthcare investment | 46% |
| Healthcare analytics market value (2026) | $81.9 billion |
| Health executives expecting AI to reduce costs via automation | 64% |
Key Insights:
- Healthcare bond issuance in 2025 reached its highest level since 2017, with over half of transactions having maturities under 10 years. Borrowers sought flexibility over long-term fixed rates in an uncertain rate environment.
- AI investment is real but concentrated: deal counts fell 7% year-over-year, while total capital committed climbed to nearly $18 billion, meaning fewer, substantially larger funding rounds are reshaping which technology platforms reach scale.
Further Reading
For more context on business funding strategies for healthcare practices, explore these National Business Capital resources:
- Medical Practice Loans: Everything You Need to Know
- Dental Practice Loans and Financing Options
- Working Capital Loan: What It Is and How to Get One
- Pharmacy Business Loans: The Complete Guide
The data in this report reflects the market conditions shaping healthcare capital decisions in 2026. If your practice is planning to expand capacity or align an equipment upgrade with your current loan timeline, a National Business Capital advisor can walk through which financing structure fits. To request a PDF copy of this report, submit a request through our contact page and our team will deliver it directly.
Sources
- CMS: National Health Expenditure Accounts: NHE Fact Sheet (2024)
- Revelio Labs: Healthcare Job Growth Is Propping Up the Labor Market (June 2026)
- Bureau of Labor Statistics: Employment Situation Summary, May 2026
- Bureau of Labor Statistics: Employment Projections Home Page
- Bureau of Labor Statistics: Healthcare Occupations Outlook
- Crestmont Capital: Healthcare Business Loan Trends: What the 2026 Data Shows for Medical Lending
- Kaufman Hall: A Capital Playbook for Health Systems (March 2026)
- Silicon Valley Bank: Healthcare Investments and Exits: H1 2026 Report
- Grand View Research: Healthcare Analytics Market Size and Share Report, 2026–2033
- Deloitte: 2026 Global Health Care Outlook
ABOUT THE AUTHOR
As COO, Phil oversees National Business Capital’s funding operations, tech infrastructure, and data intelligence. He breaks down the funding trends that matter most to decision-makers, with a special focus on leadership and CFOs who want to understand where capital is flowing and why it matters.
