US spent $4.3 trillion on healthcare in 2021: Here’s how

The AMA’s “P​​olicy Research Perspective,” published earlier this month, compiles yearly spending data from organizations including CMS and HRSA. The full source list can be found here. 

The U.S. spent more than $1.3 trillion on hospital care in 2021, the highest of any health expenditure. This represents nearly one-third of the year’s spending.  

Here is a breakdown of the distribution of healthcare spending:

1. Hospital care — $1.32 trillion (31.1 percent)
2. Other personal healthcare costs — $680.4 billion (16 percent)
3. Physician services — $633.4 billion (14.9 percent)
4. Prescription drugs — $378 billion (8.9 percent)
5. Net cost of health insurance — $255.7 billion (6 percent)
6. Clinical services — $231.2 billion (5.4 percent)
7. Investment — $207 billion (4.9 percent)
8. Government and public health activities — $187.6 billion (4.4 percent)
9. Nursing care facilities — $181.3 billion (4.3 percent)
10. Home healthcare — $125.2 billion (2.9 percent)
11. Government and administration — $51.5 billion (1.2 percent)

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