HIDA 2019 Home Care Market Report

HIDA 2019 Home Care Market Report

Market-At-A-Glance
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%.


Executive Summary
Home Health Market Overview
Aging Population Drives Demand For Home Care
Hypertension And Arthritis Are Top Ailments Among Home Health Users
Shortage Of 446,300 Home Health Aides Expected In 2025
Home Health Admissions Steadily Rise
Aging In Place Grows In Popularity
Senior Housing Supply Exceeds Demand
Home Care Offers Lower Cost Alternative For Long-Term Care
Baby Boomers Appear Overconfident In Medicare’s Coverage Of Long-Term Care
Walking And Bathing Top Needs Among Home Health Users
Home Health Agencies Largely Dependent On Government Reimbursement
Private Duty Care Primarily Paid Out-Of-Pocket
Caregivers Share Costs, Responsibilities
Remote Patient Monitoring Reimbursement Changes Likely To Spur Growth In 2019
Heart Failure And Diabetes Are Top Conditions Monitored Remotely
Patient-Driven Grouping Model Changes Home Health Reimbursement To 30-Day Episode Of Care
In Preparation For PDGM, Home Health Agencies Move Toward More Skilled Nursing
Hospice Admissions On The Rise
Most Hospice Services Take Place At Home
Greater Number Of Home Care Transactions In 2018 Vs. 2017 Across All Sub-Segments
Majority Of Durable Medical Equipment Paid For Out-Of-Pocket
Next Round Of Competitive Bidding To Use Lead Item Pricing
GHX Reports $48.3 Billion In Distributed Sales In 2018
GHX Reports Home Health Sales By Segment
GHX Reports Top Home Health Product Category Sales Through Distribution

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