US Home Healthcare Market Analysis

US Home Healthcare Market Executive Summary

The US home healthcare market was valued at $152.31 Bn in 2022 and is estimated to expand at a compound annual growth rate (CAGR) of 5.93% from 2022 to 2030 and will reach $241.48 Bn in 2030. Home healthcare has changed over time, and it will probably continue to be a key component of US healthcare systems in the future. The technologies utilized by home healthcare providers have advanced quickly in recent years. A new tool called electronic visit verification makes it easier to confirm carer appointments, schedule them, and cancel them so that no-show home appointments are avoided. The verification comprises details about the patient and the in-home healthcare provider, as well as the required services' location, date, and time. In accordance with recent laws, the social services department states that by 2023 all home healthcare service providers in the United States must employ electronic visit verification.

In the US, the healthcare industry has grown significantly in both revenue and employment. Hospitals, medical equipment, pharmaceutical products, and services including clinical trials, telemedicine, e-health, health tourism, home healthcare, and health insurance are all included in the definition of healthcare. The extension of services increased coverage, and rising governmental and private investment in the healthcare industry in the US have all contributed to the sector's growth.

The home healthcare market in the US has a big number of participants and is still in its early stages of development. Some of these players only provide a particular specialty service, while others provide a wide range of services in different geographic areas. 30-35 businesses have experienced rapid expansion in the organized market, and they now have the strongest brand recognition and traction in terms of service sales across several regions. The US has multiple home healthcare players providing healthcare across preventive, promotive, chronic, acute rehabilitative, and palliative care in the comfort of the patient’s home. Traditionally, 60–80 percent of demand for home care has been driven by senior citizens seeking supportive long-term care at home.

Market Dynamics

Market Growth Drivers

Technological advancements have made healthcare devices portable, user-friendly, and more convenient for patients at home or traveling. The introduction of newer technologies in this market has greatly boosted the current communication flow between patients and healthcare providers, enabling better, faster, and more effective care. Developments in technology coupled with increasing demand are likely to drive market growth in the US. Several companies have ventured into the delivery of medicines, further contributing to the patient-centric advantages of in-home care. Federation of US Chambers of Commerce & Industry (FICCI), 54% of people preferred laboratory tests, delivery of medicines, and nursing care at home.

The U.S. market is primarily driven by an ageing population, a rise in the prevalence of chronic diseases, and favorable reimbursement policies for home healthcare equipment. Recent technological developments and the affordability of home healthcare services are expected to fuel expansion during the projection period.

Over the past ten years, the U.S. geriatric population has been expanding quickly. According to the U.S. Census Bureau, there are 54 million adults in the U.S. who are 65 years of age or older, making up 16.5% of the total population. As they get older, the geriatric population often chooses to live at home rather than in a healthcare facility. Additionally, older individuals choose home healthcare services after surgery or medical treatment in order to shorten their hospital stay, which raises the demand for these services. The benefits of administering drugs for chronic illnesses at home include a quicker recovery, a better patient experience, fewer complications, and lower costs. This is increasing demand for home care services in the United States.

Market Restraints

The US home healthcare market is a rapidly growing industry, but there are several factors that may act as restraints to its growth. Some of the key restraints in the US home healthcare market include:

Lack of reimbursement for home healthcare services can be a major restraint for market growth. Many insurance companies do not cover certain home healthcare services, which can make them unaffordable for patients. There is a shortage of healthcare professionals, such as nurses and home health aides, in certain areas of the country. This can make it difficult for patients to access the care they need. Many home healthcare providers may not have access to the latest technology, such as remote monitoring devices and telemedicine platforms, which can limit the quality of care that patients receive. The home healthcare industry is not as regulated as the traditional healthcare industry, which can lead to variations in the quality of care that patients receive. The use of technology and remote monitoring devices can raise privacy and security concerns, as personal health information may be vulnerable to hacking or data breaches. Medicare's payment policies for home health agencies, which rely heavily on per-visit payments, can act as a barrier to the use of telehealth and remote monitoring, technologies that have been shown to improve care coordination and reduce readmissions. Also, many patients may not be aware of the services available to them through home healthcare, and may not understand the benefits of home healthcare.

Competitive Landscape

Key Players

Manufacturers (US)

• McKesson Medical-Surgical
• NxStage Medical (Fresenius Medical Care)
• Medline Industries
• Medtronic plc
• 3M Healthcare
• Baxter International                  
• B. Braun Melsungen AG
• F. Hoffman-La Roche AG
• Becton, Dickinson, and Company

Service Providers (US)

• Kindred Healthcare
• Brookdale Senior Living
• Sunrise Senior Living
• Genesis Healthcare
• Sonida Senior Living
• Diversicare Healthcare Services
• Senior Care Center
• Atria Senior Living
• Amedisys
• Home Instead

Healthcare Policies and Regulatory Landscape

Home health services including therapy, care from a home health aide, and intermittent skilled nursing are covered by Medicare under either Part A or Part B, depending on the situation. Governmental agencies are, however, taking steps to encourage service providers to pay more attention to the patients' clinical characteristics and do away with the usage of treatment service thresholds. The Patient-Driven Groupings Model (PDGM), which was launched in January 2020 and is redefining the reimbursement of home healthcare services, is one example of a significant shift to the reimbursement system in decades.