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2017 Home Care Market Report

2017 Home Care Market Report

Market At-A-Glance
The home care market was valued at $100 billion in 2016, and is projected to reach $225 billion by 2024. Two factors in particular are driving this growth: an aging population adding more seniors to the market, and lower overall costs for home care when compared to other post-acute care settings. As the market continues to grow, the number of companies providing home care services is expected to increase from 37,000 in 2016 to nearly 46,000 by 2021.

Home Health Agency Margins Remain High
Home health agency profit margins for the largest payer, Medicare, have exceeded 10% each year for 14 years beginning in 2001.
• The Centers for Medicare and Medicaid Services (CMS) currently recognizes 11,802 companies as Medicare certified home health agencies.

Hospice Care Growing Rapidly
More than 4,000 agencies offer hospice care nationwide, providing care to 1.34 million annually.
• Medicare is the largest single payer in hospice care, providing the market segment with 90% of its revenues.
• From 2016 to 2019, Medicare spending on hospice care is projected to grow from $18 billion to $21.6 billion.

DME Providers Face Increasing Challenges
Competitive bidding has contributed to reduced Medicare spending on DME products and services.
• Because of deep reimbursement cuts, DME products are covered at an average of 88% of the cost of providing them.
• The industry is consolidating quickly due to the impact of the competitive bidding program and other factors.


2017 Home Care Market Overview 3 Home Care Services Shift Towards Skilled Nursing
Number Of Home Care Beneficiaries Projected To Grow 18% By 2021
Age Demographics Impact Demand For Home Care Services
Senior Housing Shortages Expected To Begin In 2025
Home Care Providers Struggle To Compete For Talent
Home Care Occupations Projected To Have The Most U.S. Job Growth
73% Of Home Health Services Are Paid For By Medicare, Medicaid
Home Health Agencies Experience Medicare Revenue Declines
Home Health Medicare Margins Targeted For Cuts
Medicaid Spending Expected To Grow As Payer Mix Shifts
Operating Characteristics Vary Little Between Most Efficient And Least Efficient Providers
Medicare Margins Vary Despite Similar Operating Characteristics
Tech Used To Assist In Aging In Place
Hospice To Continue Rapid Growth
Hospice Patients Are Older, Require Additional Resources In Later Stages
$14.4 Billion in Long-Term Care Mergers And Acquisitions Deals In 2016
DME Spending Projected To Reach $70.7 Billion By 2025
Competitive Bidding Drives DME Reimbursements Below Costs
Competitive Bidding Lowers DME Utilization, Drives Consolidation
Total Number of DME Companies Projected To Shrink 11.1% By 2019
19 Of Medicare Top 25 DME Products/Services Had Medicare Spending Declines In 2015
GHX Reports $45.1 Billion In Sales Through Distribution in 2016
GHX Reports Home Health Sales By Segment
GHX Reports Top Home Healthcare Product Category Sales Through Distribution

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