September 17, 2025

Houston’s Health Care Sector Thrives with Growth

News Summary

Houston’s health care sector is gaining national recognition with top rankings among employers, a surge in job opportunities, and rising health care spending. The city’s largest industry has added over 100,000 jobs in the past decade and is projected to create an additional 12,800 jobs this year. Factors driving this growth include an aging population and increasing demand for services. While challenges such as Medicaid cuts loom, the overall outlook for Houston’s health care industry remains optimistic as it continues to evolve and expand.

Texas – The Houston healthcare landscape continues to shine, as Houston Methodist has secured a place among the top employers in Texas on Forbes’ seventh annual America’s Best Employers By State list. Ranking No. 3, Houston Methodist has fallen from its previous top position last year. Additionally, Cook Children’s Health Care System in Fort Worth has made the list, coming in at No. 10.

Several other notable healthcare employers in Houston include the University of Texas MD Anderson Cancer Center, which ranked 14th, and Memorial Hermann Health System at 24th. Baylor College of Medicine, University of Texas Health Science Center at Houston, and University of Texas Medical Branch at Galveston follow, with rankings of 43rd, 73rd, and 84th, respectively.

This year’s rankings featured a total of 1,417 companies across various states, showcasing a competitive selection within the industry. In the broader healthcare context, spending by U.S. companies on employee health care is projected to surge by 9.5% in 2026, amounting to approximately $17,000 per employee. This increase is primarily driven by rising chronic conditions and escalating prescription drug costs, particularly for name-brand and specialty medications.

Growing Importance of the Healthcare Sector

The healthcare sector has been identified as Houston’s fastest-growing large industry. The Texas Medical Center alone accounts for approximately one-third of all healthcare jobs in the area. Projections suggest that by 2062, the healthcare sector will surpass government employment as Houston’s largest employer, with some estimates indicating that this milestone may be reached even sooner.

Job Growth and Employment Trends

In the last decade, healthcare employment in Houston has seen significant growth, adding over 100,000 jobs. With an ongoing demand for services, an additional 12,800 jobs are projected to be created by the end of this year. The Texas Medical Center has been ramping up its workforce by about 10% annually to keep pace with community needs.

As of May 2025, more than 396,000 individuals are employed in health care and social assistance roles in the Houston area. Factors such as the city’s population growth are fueling the rising demand for health care services.

Demographic Shifts Impacting Healthcare Demand

Significantly, there has been a 50% increase in the number of Houston residents aged 65 and older between 2013 and 2023, a demographic that typically requires more health care services. This trend is expected to continue contributing to the growing demand for healthcare in the region.

Challenges and Future Considerations

However, the Houston healthcare sector may face staffing challenges in light of impending Medicaid cuts and potential policy changes that could affect hospital funding. Despite these challenges, the demand for healthcare services is anticipated to persist due to demographic trends and an increasing incidence of chronic diseases.

As Houston’s health care industry continues to grow and evolve, the emphasis on quality employment and sustainable practices remains paramount. With leading employers being recognized nationally, the future of healthcare in Houston appears to be bright yet complex, balancing opportunities with challenges that come with rapid growth and changing demographics.

Deeper Dive: News & Info About This Topic

Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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