North America Home Healthcare Market Analysis

North America Home Healthcare Market Executive Summary

The North America home healthcare market was valued at $1,013 Bn in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 6.6% from 2022 to 2030 and will reach $1,689 Bn in 2030. Northern America's population is predicted to grow from 369 million in 2020 to 425 million in 2050. North America accounts for 7.8 percent of the global population and accounts for 28 percent of global economic output, making it the continent with the highest GDP per capita of the seven continents.

A wide range of medical treatments is offered for sickness management at home under the umbrella of "home healthcare." The rising incidence of cancer and other chronic diseases, advancements in the medical device sector, and an increase in home healthcare settings because of the region's aging population are all factors contributing to the market's expansion. However, a lack of insurance coverage and worries over patient safety are impeding industry expansion.

Market Dynamics

Market Growth Drivers

High-impact key drivers of this market are an aging population base, rising incidence rates of target diseases, and the desire to reduce healthcare spending as an economically viable effort. The cost of treating chronic diseases is anticipated to rise steadily over the projection period due to an increase in their prevalence. This individualized care serves as a high-impact rendering driver for the business and is a cost-effective way to reduce treatment costs. The market is anticipated to be primarily driven by the huge elderly population, who are particularly vulnerable to conditions including pressure ulcers and venous stasis ulcers. Statistics from the World Health Organization (WHO) show that by 2050, there will be 2 Bn individuals in the world who are 60 years of age or older, up from 841 Mn. The demand for home health services is therefore driven by the expanding worldwide geriatric population and the fact that over 70% of patients are 65 years of age or older.

According to the Centers for Disease Control and Prevention (CDC), 6 in 10 Americans had at least one chronic illness in 2019. One of the main factors driving the growth of the home healthcare market in North America is the government's increasing encouragement of the establishment of home care settings by encouraging the release of products required for home care settings. Hospital-at-home initiatives have received support from nations like the US and Canada because they give hospitals the freedom to provide their patients with hospital-quality care at home. Additionally, the market expansion is being accelerated by a number of methods used by participants in the home care setting business, such as product releases, alliances, and innovations.

Market Restraints

Home healthcare is generally covered by insurance in North American nations, although this insurance is only extended to Medicare-certified home healthcare organizations. Equipment used for multi-parameter or remote monitoring is not covered by insurance. The lack of skilled nursing personnel with a compassionate attitude is anticipated to slow the rate of expansion of the North America home healthcare market. To fulfill demand in the upcoming years, a significant rise in the number of healthcare professionals is required.

According to research by the consulting firm Mercer, the United States will experience a severe shortage of healthcare workers during the next ten years. The company predicts a shortfall of 29,400 nurse practitioners and more than 400,000 home health aides by 2025. The healthcare industry will also face a scarcity of other professionals. Many areas in North America lack the infrastructure necessary to provide home healthcare services, such as adequate transportation and communication systems at the same time.

Competitive Landscape

Key Players

• lmost Farally
• Amedisys Inc.
• Kindred Healthcare
• Koninklijke Philips N.V. (U.S.A)
• Davita Inc. (U.S.A)
• Cardinal Health (U.S.A)
• Sunrise Medical (U.S.A)
• General Electric compaG.E. (C.f.)
• Kinnser Software
• General Electric (U.S.A)
• BAYADA Home Health Care (U.S.A)
• Invacare Corporation (U.S.A)
• Philips Healthcare
• Baxter (U.S.)

Notable Deals

In Jan 2023: Great Elm Healthcare, LLC, a division of Great Elm Group, Inc., which runs a full line of respiratory-related durable medical equipment (DME) service locations across eight states in the Midwest, Southwest, and Pacific Northwest, has been acquired by Quipt Home Medical Corp. The division generated $60 million in revenue last year.

December 2022: For the purpose of offering a line of home healthcare services to the neighborhood, in Dec 2022, Tampa General Hospital (TGH) and Visiting Nurse Association (VNA) have partnered. With an integrated network of services to enhance the quality of care and patient experience, TGH Home Care powered by VNA of Florida enables patients to receive home care while remaining inside the TGH network.

In October 2022: The Denton, Texas-based Trio Home Health and Hospice were purchased by home health company Jet Health. The eight purchase for Jet Health in the previous four years advances the provider's objective of dominating the home health and hospice market in the western United States.

Healthcare Policies and Regulatory Landscape

In the United States, home healthcare is regulated at both the federal and state levels. The federal government regulates certain aspects of home healthcare through agencies such as the Centers for Medicare & Medicaid Services (CMS) and the Department of Health and Human Services (HHS). At the state level, home healthcare is regulated by state departments of health and other agencies.

In Canada, the regulation of home healthcare services is the responsibility of each province and territory. Home healthcare services are typically regulated by the Ministry of Health or the equivalent department in each province.

Reimbursement scenario

In the United States, home healthcare services can be reimbursed through several sources including Medicare, Medicaid, private insurance, and out-of-pocket payment. Medicarex1 is a federal program that provides healthcare coverage for people over 65 years of age, as well as people with certain disabilities. Medicare covers some home healthcare services, including skilled nursing care, physical therapy, occupational therapy, and speech therapy. However, Medicare typically only covers these services if they are considered medically necessary and ordered by a doctor.

Medicaid is a joint federal-state program that provides healthcare coverage for people with low income. Medicaid covers a wider range of home healthcare services than Medicare, including personal care services, such as bathing, dressing, and meal preparation. However, the specific services covered and the reimbursement rate varies by state.

In Canada, home healthcare services are typically covered by the public healthcare system. The specific services covered and the reimbursement rate varies by province, but the government typically covers a range of home healthcare services, including nursing care, personal care, and rehabilitation services.