The U.S. home healthcare market involves providing medical care and services to patients at home. This includes skilled nursing care, physical therapy, occupational therapy, speech therapy, personal care services and more. Home healthcare offers various benefits over facility-based care such as increased comfort, flexibility, and companionship for patients along with reduced healthcare costs. It allows patients to receive medical attention while residing in the comfort of their own homes. The U.S. home healthcare market is estimated to be valued at US$ 23.53 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Demand for Healthcare Services at Home
One of the major drivers boosting the growth of the U.S. home healthcare market is the growing preference for receiving medical care services at home rather than at healthcare facilities such as hospitals and nursing homes. This is owing to the various benefits offered by home healthcare such as increased comfort, flexibility, and lower costs of care. Additionally, the COVID-19 pandemic has further increased the demand for home healthcare as patients are opting to receive treatments and recover from illnesses while residing safely at their homes to avoid risks of virus exposure and transmissions at medical facilities.
Rising Geriatric Population
The aging population profile in the U.S. is another key factor fueling the demand for home healthcare services. As per the U.S. Census Bureau, the population aged 65 years and older is increasing rapidly and is expected to reach 95 million by 2060. The elderly are more prone to chronic illnesses and disabilities requiring long-term care. Home healthcare offers a convenient option for caring of the geriatric population enabling them to live independently and safely at home for as long as possible.
Segment Analysis
The U.S. home healthcare market size is dominated by the skilled nursing services segment accounting for over 35% share owing to high demand for post-acute skilled nursing needs of aging population suffering from chronic diseases. The rehabilitation therapy services segment is expected to witness fastest growth during the forecast period attributed to increasing acceptance for physical, occupational and speech therapies at home settings for convenience and comfort.
PEST Analysis
Political: The regulatory landscape encourages home-based care and post-acute care transitioning from hospitals to reduce healthcare costs. Favorable policies promote home healthcare equipment and services.
Economic: Rising healthcare costs is a key driver spurring demand for lower cost home-based care. High prevalence of chronic diseases among aging population drives segment growth.
Social: Growing acceptability of home healthcare owing to factors like personalized care, comfort of home environment and convenience. Technological: Adoption of digital health technologies facilitates remote monitoring and enables physicians to track health parameters, thus improving care quality and outcomes.
Key Takeaways
The U.S. home healthcare market is expected to witness high growth during the forecast period supported by favorable reimbursement policies, growing geriatric population, and cost-effectiveness of home healthcare services compared to hospital stays. The Western region dominates the market currently owing to higher healthcare expenditures and widespread availability of services.
Regional analysis: Western region holds over 40% share currently led by states like California and Texas having sizable aging populations and healthcare infrastructure. The South region is poised to emerge as the fastest growing regional market owing to rising prevalence of chronic conditions in states such as Florida and rapid expansion of service provider network.
Key players operating in the U.S. home healthcare market are Aetna, AmeriHealth, Lynn Community Health Center, CHAS Health, Cigna, Siemens Healthcare GmbH, NextGen Healthcare, Athena Healthcare, NextStep Solutions, and Genpact Limited. Key players are focusing on leveraging digital solutions and remote patient monitoring to enhance service offerings and drive market consolidation.
