HEALTH COST-CONTAINMENT - WHAT IT WILL MEAN FOR WORKERS AND LOCAL ECONOMIES

AFTER DECADES OF RAPID growth, the rate of increase in health services spending appears to be moderating. Although a slowdown in health expe nditure growth would release resources for other uses in the economy, concerns have been raised about the effects of a spending slowdown on health workers and regional economies. Based on projections carried ou t by the Bureau of Labor Statistics during the health reform debate an d on state health sector employment data, the author concludes that he alth workers may experience costly dislocation as health spending grow th slows, and some regions may be more affected than others. However, the appropriate response is a general economic policy supporting econo mic growth and full employment: policy with regard to health expenditu re growth cannot be held hostage to concerns about employment effects.