Oregon's Move To Outpatient Care

By Christine Kern, contributing writer

Costs driving more patients from inpatient to outpatient care.

Compared to many other industries, healthcare is more insulated from the typical business cycle as many health services are mandatory, rather than discretionary, expenses. Additionally, employment in healthcare is more closely tied to population size than economic conditions or consumer demand. When the population of a community increases, there is a greater need for medical services and thus medical employees.

In Oregon, healthcare is expanding with the growing population. The Great Recession had little impact on the healthcare industry, which continued to grow while other industries shed thousands of jobs. However, digging a little deeper, not all components of the healthcare industry are growing at the same pace. Ambulatory health services – which includes outpatient clinics – is growing rapidly while hospitals are experiencing stagnation.

Significantly, due to the rising cost of inpatient hospital services, Oregonians are increasingly utilizing outpatient clinics and primary care physicians for their significant cost savings.

Jobs continue to grow in the healthcare industry and it’s driven more by population growth than the economy, according to a report from the Oregon Employment Department. More specifically, the report reads, three factors to this growth: an increased general population, an increased geriatric population, and greater access.

While this upward trend of the industry has been apparent for about 25 years already, the latest growth is being seen predominantly in outpatient facilities, as opposed to hospitals. Oregonians are choosing the less expensive care provided in clinics, as hospital care costs continue to rise.

According to the report, outpatient clinics added nearly 9,000 new jobs in the past five years — a 13 percent increase. From 2012 to 2013, home health services grew 12 percent. Hospital employment, however, have remained stagnant.

Projections show that the healthcare industry is expected to add 38,500 new jobs from 2012 to 2022. Outpatient facilities are expected to lead that growth, with 19,100 jobs. In addition, nursing and residential care facilities — aided by the aging population — are expected to grow by 27 percent, adding 11,800 new jobs.

As more Oregonians obtain health insurance, demand for healthcare is also expected to increase. The Affordable Care Act, despite its bumpy roll out, is expected to continue job growth in the healthcare industry.