Healthcare made up one-fifth of the US economy in 2021 reflecting the cost to combat the Covid-19 pandemic with US Government spending for healthcare having grown 36% in 2020, significantly faster than the 5.9% growth during pre-pandemic levels.
The unprecedented demand on the medical system and medical oxygen continued into 2021 as new variants caused new outbreaks and elective healthcare came back. Real GDP fell during 2020 due to the closure of many parts of the economy and began to come back late 2020 and into 2021 and is estimated to return to slightly higher than 2019 levels thanks to growth over 6% during the first half of 2021. Healthcare spending was estimated to grow 9.7% during 2020 compared to 4.5% during 2019 and is projected to continue to grow above 9% in 2021 as the pandemic persists.
Our industry has been supporting the healthcare system through the pandemic by ensuring hospitals received the therapeutic oxygen required to treat Covid-19 patients. In several instances, especially in the south during mid-to late-2021, industrial gas companies have cut back on liquid nitrogen (LIN) production in order to produce more liquid oxygen (LOX) to keep up with demand (see www.gasworld.com/2021613.article).
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