In 2023, the home care market is valued at $264.3 billion. The market includes home-based medical care, hospice, home care and personal services, and durable medical equipment (DME). By 2025, between ten and 25% of care delivered in hospitals, outpatient clinics, physician offices, skilled nursing facilities, and urgent care is projected to shift to the home.
Key segments of the home care market include:
- Home health: 52%
- DME: 28%
- Hospice and palliative care: 15%
- Personal care services: 3%
- Therapy: 2%
Home Health Agencies Challenged To Meet Rising Demand
Monthly referral volumes to home health agencies (HHAs) from hospitals in 2022 were 21% higher than in 2019. As referral volumes increased, the rejection rate reached an all-time high of 76% in December 2022. In 2023, the continued rising demand for post-acute care is being driven by increased referrals for higher acuity patients along with the pandemic induced acceleration in demand for home-based services.
Higher Acuity Home-Based Care Is A Top Priority For Growth
Fifty-one percent of surveyed home care providers plan to pursue delivery of higher acuity patient care at home such as the skilled nursing facility (SNF) at home model or hospital at home model in 2023. The hospital at home model surged during the Public Health Emergency (PHE) when the Centers for Medicare & Medicaid Services (CMS) allowed Medicare-certified hospitals to treat patients with inpatient-level care at home. CMS’ Acute Hospital Care At Home program was extended and has a current expiration date of December 31, 2024.
Advancements In Home Care Technologies Improve Patient And Caregiver Experience
Software and data collection advancements in home health technology that allow access to both care caregivers and patients are improving the patient experience and caregiver work environment. Fifty-seven percent of surveyed home caregivers support the adoption of home care technologies that improve patient monitoring and support regulatory compliance. In 2023, the top areas for technology investments include remote patient monitoring (RPM), patient engagement, and staff management.
Demographics, Technology, And Consumer Demand Are Driving The Durable Medical Equipment Market
In 2023, the U.S. DME market is valued at $75.4 billion and is projected to grow 52% to reach $114.5 billion by 2031. The DME market growth is driven by an aging population with chronic diseases, a preference for home-based care enabled by RPM technology, and advancements in the size, portability and accessibility of equipment. Out-of- pocket payments represent the largest DME revenue stream followed by Medicare and private insurance. Medicare’s share of payments is projected to reach 26% by 2031.
Table of Contents
- Executive Summary
- Home Care Market Overview
- Home Health Agencies’ Referral And Rejection Rates Continue To Rise
- Care Services Expected To Shift From Traditional Settings To The Home By 2025
- Site Of Care Shifts Are Driving The Projected Increase In The Home Health Workforce
- Key Technologies Offer Quality Improvements And Reduced Costs In Home Care Delivery.
- Over Half Of Home Care Providers Plan To Pursue Higher Acuity Patient Care
- Labor Shortages Continue To Negatively Impact The Home Care Market In 2023
- Home Health Users Are Older With Multiple Chronic Conditions
- Revenue Of Home Care Products Sold Through Distribution Steadily Increases Post-Pandemic
- Maxim Healthcare Among The Largest Home Health Agencies
- Home Care Mergers And Acquisitions Rebounding From Decline In 2022
- Hospice Admissions Grow Post-Pandemic
- Over Half Of Hospice Care Is Delivered At Home.
- Durable Medical Equipment Market Projected To Reach $115 Billion By 2031
- Respiratory Devices Remain The Top DME Product Category
- Rental DME Market Projected To Decline Following Pandemic Increase
- Home Infusion Market Projected To Grow 75% By 2030
- Clarivate Lists Top Home Care Products Sold Through Distribution
