The healthcare industry remains a vital and expanding part of the local economy. Recently, the Yale New Haven Healthcare System commenced the construction of a neuroscience campus worth $838 million and covering 505,000 sq. ft. The project involves two new towers offering 214 inpatient beds and an underground parking garage with 198 spaces, resulting in the creation of 400 construction jobs. Hartford Healthcare is also expanding its services in the area while both federally qualified health centers in the region are undergoing significant expansions. The Hill Health Center is constructing a new 15,000 sq. ft. facility at the Dixwell Q-House, while Fair Haven Community Healthcare is planning to construct a new three-story facility on Grand Avenue.

As the population ages, the demand for healthcare services will continue to rise, including hospitals, nursing homes, rehabilitation centers, private and in-home care providers, and congregate living facilities. However, the industry faces significant challenges, such as the need for a well-qualified and substantial workforce, high cost of living, lack of diverse housing options, the U.S. hospital payment system, and an inadequate behavioral health system.

The sector's focus is shifting towards the social determinants of health, including economic inequity and racism. There is also a growing emphasis on partnering with other sectors to improve community health, promote public health infrastructure, stabilize and strengthen the behavioral health system, advance health equity, and prioritize quality care to enhance health outcomes.