HIDA 2019 Home Care Market Report
Projected total spend for the home care industry’s subsectors in 2019 include:
• Home health, $108 billion.
• Home medical equipment market, $60.9 billion.
• Hospice and palliative care, $28.5 billion.
In 2030, 21% of the population is projected to be over the age of 65. As the aging population continues to grow, and consumer preference moves toward aging in place, demand for home care is expected to increase.
Home health admissions in second quarter 2018 were 943,100, up 0.8% from the same quarter in 2017. Hospice utilization reached over 50% for the first time ever in third quarter 2018 and admissions were up 4.2% year-over-year.
Hypertension Top Health Condition Of Home Health Patients
Hypertension, arthritis, and heart disease are the most common health conditions among home health users.
Percent of home health patients with top ailments include:
• 89% have hypertension.
• 60% have arthritis.
• 55% have heart disease.
95% of home health patients need assistance with walking/locomotion and 97% of patients require assistance with bathing. Other top ADLs include dressing and transferring in/out of bed.
Home Health Care Worker Shortage Expected
Personal care aides, registered nurses, and home health aides rank among the top five jobs predicted to have the most growth in the U.S. through 2028. These three occupations combined are expected to create more than 1.5 million new jobs. The industry, however, is not expected to be able to fill all the jobs and an anticipated workforce shortage of 446,300 home health aides is expected.
Significant Reimbursement Changes Occurring In Remote Patient Monitoring,
Home Infusion And Home Care
In 2019, the Centers for Medicare & Medicaid Services (CMS) stopped requiring home health agencies to prove medical necessity for home visits in place of an office visit. Home health agencies are preparing for significant reimbursement changes due to implementation of the Patient Driven Grouping Model (PDGM) in 2020. PDGM could lead to significant decreases in reimbursement for home health agencies that have traditionally focused more on physical and occupational therapies.
Active Mergers & Acquisition Year In 2018
In 2018, the number of home health agency acquisitions increased 25% year-over-year, private duty care increased 125%, and hospice increased 36%.
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