Significant Divergence in Private Vs. Public Health Facilities Construction in July

Census2The divergence between private and public health facilities construction continued in July. Overall, health facilities construction starts increased 0.3 percent in July, versus zero for other construction. However, there was a significant difference between the private and public segments.

Construction of private health facilities dropped 0.3 percent, versus an increase of 1.0 percent for other private construction. Construction of public health facilities increased a whopping 2.5 percent, versus a drop of 3.2 percent for other public construction (Table I).

Is this what they mean by “infrastructure” spending – broken bridges and roads, while more VA and county hospitals spring up?


For the twelve months from June 2015, there is a significant difference in trend between private and public construction. Private construction increased 4.4 percent, but private health facilities construction dropped 1.5 percent. Public construction dropped 6 percent, but public health facilities construction increased by 1.9 percent.
Overall, health construction dropped 0.8 percent, versus an increase of 1.6 percent for non-health construction. If the divergence between private and public health facilities construction persists, it will suggest investors expect VA, Medicaid, “uncompensated” care to grow as a share of U.S. health spending, versus private payment.

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  1. Ron Greiner says:

    Propaganda Alert:

    The broadcast networks have refused to cover the repeated failures of ObamaCare in 2016. During the entire year, ABC World News Tonight and NBC Nightly News have yet to give the floundering program any coverage at all, while CBS Evening News only found time to cover two of the ObamaCare updates – and that only added up to 2 minutes and 18 seconds of coverage for the entire year.

    To put that in perspective, these same three evening news shows managed to find 46 minutes and 49 seconds to dedicated to Olympic swimmer Ryan Lochte running afoul of Brazilian police.