Heads up: Healthcare among dominant industries per states
Short of healthcare representing nearly 20% of the gross domestic product (GDP) of the United States circa 2020, should anyone doubt the influence and power of healthcare as an economic force they need only look to how healthcare enterprises stack up as an employer per state.
Based on the latest data from the U.S. Centers for Medicare & Medicaid Services (CMS), domestic healthcare spending increased 9.7% in 2020 to $4.1 trillion or $12,530 per person. As a share of the GDP, CMS listed health spending at 19.7%. These represent the most recent available data as of December 2021.
Meanwhile, the insightful online business media outlet "24/7 Wall Street" dissected the data even further by tracking industry dominance by state per data available in 2019.
Per "24/7 Wall Street" calculations and reporting, the largest industry in 42% of states is healthcare — that's 21 of 50 states. The site reported its findings by listing "GDP of largest industry ($, billions)," "Largest industry GDP as share of all industries (%)," "Employment in largest industry" and "Average annual compensation in largest industry ($)."
What did "24/7 Wall Street" find?
Ambulatory healthcare services accounted for the largest industry in 12 states: Alabama, Arizona, Arkansas, Colorado, Florida, Maryland, Minnesota, Mississippi, Missouri, New Jersey, Tennessee and Vermont.
Insurance accounted for the largest industry in 7 states: Connecticut, Illinois, Iowa, Nebraska, New Hampshire, Rhode Island and Wisconsin.
Hospitals accounted for the largest industry in 3 states: Maine, Massachusetts and Montana.
After healthcare, monetary authorities (e.g., banking, etc.) accounted for the largest industry in 7 states: Delaware, Georgia, New York, North Carolina, Ohio, South Dakota and Utah.
| State | GDP of largest Industry ($, billions) | Largest industry GDP as share of all industries ($) | Employment in largest industry | Average annual compensation in largest industry ($) |
|---|---|---|---|---|
| Ambulatory healthcare services | ||||
| Alabama | 10.4 | 4.5 | 100,031 | 64,553 |
| Arizona | 17.0 | 4.6 | 172,433 | 63,809 |
| Arkansas | 5.8 | 4.4 | 59,796 | 64,186 |
| Colorado | 14.0 | 3.6 | 139,996 | 63,608 |
| Florida | 51.4 | 4.6 | 521,568 | 64,552 |
| Maryland | 15.8 | 3.7 | 150,609 | 66,638 |
| Minnesota | 17.0 | 4.4 | 156,050 | 76,583 |
| Mississippi | 5.1 | 4.4 | 51,535 | 59,647 |
| Missouri | 12.3 | 3.7 | 120,333 | N/A |
| New Jersey | 27.2 | 4.3 | 244,625 | 64,942 |
| Tennessee | 18.2 | 4.8 | 155,995 | 66,230 |
| Vermont | 1.6 | 4.8 | 17,271 | 60,521 |
| Insurance | ||||
| Connecticut | 23.0 | 8.0 | 61,923 | 138,398 |
| Illinois | 45.7 | 5.2 | 139,611 | 99,628 |
| Iowa | 18.5 | 9.5 | 52,046 | 84,186 |
| Nebraska | 11,1 | 8.6 | 30,137 | 72,765 |
| New | Hampshire | 4.3 | 4.9 | 13.599 92,107 |
| Rhode | Island | 3.2 | 5.2 | 10,612 86,263 |
| Wisconsin | 18.9 | 5.4 | 71,709 | 78,377 |
| Hospitals | ||||
| Maine | 3.3 | 4.8 | 33,559 | 64,486 |
| Massachusetts | 22.1 | 3.7 | 198,546 | 76,723 |
| Montana | 2.5 | 4.7 | 25,583 | 65,511 |