Monetary Matters with Jack Farley The Healthcare Sector Job Growth is Propping Up the US Economy (For Now) | Eric Pachman
Jun 26, 2025
Eric Pachman, Chief Analytics Officer at Bancreek Capital Advisors, dives into the critical role of the healthcare sector in U.S. job growth. He warns that proposed cuts to Medicaid could destabilize this sector, risking a recession. The conversation touches on the intricate challenges of drug pricing, the influence of pharmacy benefit managers, and how financial pressures affect healthcare policies. Pachman advocates for greater transparency and reform in the industry, emphasizing how these changes could safeguard both employment and economic stability.
AI Snips
Chapters
Transcript
Episode notes
Healthcare's Massive Role in Job Growth
- Healthcare has added 63% of all private jobs in the last two years despite only comprising 17% of the workforce.
- Its job growth has propped up the US economy and masked a weaker labor market elsewhere.
Medicaid Cuts Could Trigger Recession
- Cutting trillion dollars from Medicaid threatens a massive unwinding of healthcare job growth.
- Healthcare's complexity makes it the economic "house of cards" that could trigger recession if destabilized.
Structural Causes of Healthcare Inefficiency
- Government expansion of Medicare and Medicaid leveraged private companies for delivery but led to inefficiencies and middlemen layers.
- Income inequality and political unwillingness to fund low-income care has inflated healthcare complexity and costs.