California: Hospital Jobs vs. Population

Last post we looked at how employment numbers in hospitals in California faired in the past ten years. for the most part there was consistent upward trends. Why do hospitals continue expanding, and do they expand at a rate of population increase (that is, the number of employed counted as 'expansion' in this post.)

Looking at this graph that look at the percentage change between the population in California and the change in employment in the hospital sector during a ten plus year period from 2000-2011 we get an idea of the trend.

Surprisingly, as population has increased on average of about 1% a year, the hospital sector has grown more. Although we can't conclude how the hospital sector reacts, there is a close relationship between the increases and decreases in jobs to population. If there is a decline in population the hospital sector will respond in the ensuring short term.

Of course, what would explain why the hospital sector increases more than the population increases? Although population may increase in California, it still does not account for the demographic. If there are more older people (which as a nation as a whole that's true) you'll find a greater strain on the health sector. Expect an increase in the number of people who need medical attention and thus growth in the hospital sector beyond the normal population additions.

Data compiled by San Diego Bankruptcy Lawyers derived from RAND.