A Satellite Account for Health in the United Statest

This paper develops a satellite account for the US health sector and measures productivity growth in health care for the elderly population between 1999 and 2012. We measure the change in medical spending and health outcomes for a comprehensive set of 80 conditions. Medical care has positive productivity growth over the time period, with aggregate productivity growth of 1.5 percent per year. However, there is significant heterogeneity in productivity growth. Care for cardiovascular disease has had very high productivity growth. In contrast, care for people with musculoskeletal conditions has been costly but has not led to improved outcomes. (JEL E01, H51, I10)

Automated summary

This paper develops a satellite account for the US health sector and measures productivity growth in health care for the elderly population between 1999 and 2012. The study finds that medical care has a positive overall productivity growth rate of 1.5 percent per year, with significant heterogeneity in productivity growth across different conditions. Care for cardiovascular disease exhibits high productivity growth, while care for musculoskeletal conditions is costly but does not lead to improved outcomes.