The Center for Health Information and Analysis (CHIA) released its Annual Report on the Performance of the Massachusetts Health Care System. The 2025 report documented an 8.6% growth rate in total health care expenditures in 2023, which is well above the state’s established cost growth benchmark of 3.6%. This year’s increase represents the second largest since the state measurement began in 2012. The report looks at spending primarily in the following service categories: hospital inpatient, hospital outpatient, pharmacy, physicians and other medical spending which includes skilled nursing facilities and home health services, with pharmacy (net of prescription drug rebates) experiencing the greatest growth in spending at 10%. Relative to nursing home care, CHIA reported that the sector experienced overall occupancy of 84% in 2023, up from 80% in 2022. Current nursing facility occupancy has continued the upward trend upward in 2024 to 90%.
Key findings from the report were presented at the Health Policy Commission’s Health Care Cost Growth Benchmark Hearing on March 13, 2025.