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2015 Extended Care Market Report

2015 Extended Care Market Report

Executive Summary

MARKET-AT-A-GLANCE

Current trends reflect an increase in at-home care, and the extended care market is seeing rapid shifts for both providers and patients. There is significant growth in the number of home health agencies as well as home care product sales, while hospices experienced moderate growth. Skilled nursing facilities experienced minimal growth, while the number of SNF provider days of reimbursed care actually declined slightly in favor of increased intensive therapy days. The growing aged population and changes to reimbursement are coming together to reconfigure the extended care landscape.

KEY TOPICS

Aging-in-place, new technology, nursing shortages, and an increasing number of mergers and acquisitions are all noteworthy trends in 2015 within extended care. Providers are also looking at transitional care, near-patient testing, and other innovative ways to care for the population, while on-line retailers are seeing a 10% increase in sales over prior year reports.

HEALTHCARE POLICY

With the Affordable Care Act (ACA) in place, newer legislation seeks to improve patient outcomes in skilled nursing facilities and to reduce hospital readmissions. SNFs, inpatient rehabilitation facilities, and hospices all are receiving a slight increase in reimbursement levels in either fiscal year 2015 or 2016. All are experiencing new quality reporting standards and Value-Based Purchasing (VBP) requirements by Medicare.

GHX SALES DATA

The data from the Global Healthcare Exchange (GHX) Market Intelligence program provides statistics on overall growth in extended care sales through distribution, as well as for top product categories by both dollars and units for the prior calendar year. Of the $40.2 billion in overall healthcare sales through distribution as reported by GHX, extended care’s share remained at 24% for 2013 to 2014. As a subset of that, in home health product sales, point-of-care testing reagents and supplies, as well as specimen collection kits and supplies saw the greatest growth from 2013 to 2014.


MARKET-AT-A-GLANCE
Extended Care: A Broader Understanding For a New Healthcare Environment
Long-Term Care: Who Will Pay the Cost As the Population Continues to Age?
SNFs: Overall Use Declines, While Intensive Therapy Days Increase
Nursing Home Utilization Continues Steady Decline Over Past Decade
Assisted Living Services Expand To Serve Aging Baby Boomers
Long-Term Acute Care Hospitals: Patient Count Triples in Last Decade
IRFs: Number of Facilities Declines Moderately
Home Health Agency Growth Outpaces Other Extended Care Providers
Home Health Care Supports ‘Aging in Place’
Home Care Product Market Growth Continues
Online Medical Supply Sales: 10% Annual Growth, 2009–2014
Brick-and-Mortar Retailers: A Growing Healthcare Option for Consumers
DME Sales: On Track to More Than Double, 2006–2022
Hospice: Moderate Growth, 2009-2013
Respite Care: A $522 Billion Business
Pain Management: Device Business to Reach Nearly $3 Billion by 2022
KEY TOPICS
Medicare Margins Decline Among Post-Acute Care Providers
Nurse Shortage Estimates: 260k to 1 Million in Next Decade
Mergers and Acquisitions Continue Record Advance in 2014
Health IT Adoption Slowly Gains Momentum in Extended Care
Transitional Care Helps Prevent Readmissions
Aging Population Strains the Healthcare System
Extended Care Facilities Conduct “Near-Patient” Lab Testing
Nursing Home Resident Incontinence Costs $5 Billion Annually
HEALTHCARE POLICY
Skilled nursing Facilities Receive 1.4% Payment Increase in FY 2016
Hospice Facilities Receive 1.4% Medicare Reimbursement Increase in FY 2015
Inpatient Rehab Facilities Will Receive 1.7% Increase in FY 2016
Legislation Seeks to Improve SNF Outcomes
Competitive Bidding for DMEPOS Round 2 Recompete Underway
GHX SALES DATA
Extended Care’s Share of GHX-Reported Total U.S. Healthcare Market Increases
GHX Lists Top Long-Term-Care Products Sold Through Distribution
GHX Reports Changes in Long-Term Care
Home Health Growth by GHX Submarket
GHX Reports Top Home Healthcare Products Sold Through Distribution

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