Through the third quarter of 2020, health services spending is down 2.4 percent compared to 2019, according to data from the U.S. Census Bureau's quarterly services survey analyzed by the Kaiser Family Foundation.
Although there is still one quarter left to make up the decline, if health service revenue for the calendar year ends up lower than 2019, it would be the first time it has ever happened, according to the report.
"Any decrease in health spending would be historic, as health costs tend to rise faster than inflation and have even grown during past periods of economic downturn," Kaiser Family Foundation stated in the report.
Through the third quarter, ambulatory and outpatient care facilities have seen some of the largest drops in revenue. Ambulatory settings, such as physician offices, have seen a 4 percent decline, and outpatient settings have seen a 4.7 percent decline.
Hospital revenue also fell 1.7 percent in the first nine months of the year when compared to 2019. The revenue fell the sharpest in the second quarter due to the cancellation of elective procedures amid the pandemic and saw a rebound in the third quarter.
Spending on medical and diagnostic lab services was up 1.2 percent through the first nine months of 2020, compared to 2019. The providers saw a 14.6 percent decline in the second quarter, but a 22.2 percent increase in the third quarter of 2020, as testing supplies became more readily available.
Kaiser Family Foundation said that when adding in spending on prescription drugs, total health spending in the U.S. was down by 0.5 percent on an annualized basis through the third quarter.