Home Care Market Report 2022

Home Care Market Report 2022

Market At-A-Glance
In 2022, the home health market is valued at $226 billion. The market includes in-home medical care, hospice, home care and personal services, and durable medical equipment (DME). By 2030, the U.S. population of adults 65 and older is projected to grow 75% from 54.1 million adults to 94.7 million adults. As the aging population continues to grow and consumer preference moves away from institutionalized care, demand for home care is expected to increase.

Caregiver Shortages Remain The Top Priority Of Home Care Providers
In 2022, the home care caregiver shortage impacted nearly 100% of home care providers and increased the cost of home health aides by 12%. Caregiver shortages reached the top of the list of trends impacting the home care market in 2021 and remains the top trend in 2022. Eighty percent of home care providers view caregiver shortages and turnover as their top priority and threat to the home care industry. To increase caregiver recruitment and retention, home care agencies are improving compensation and benefit packages as well as refining training protocols.

Durable Medical Equipment Market Projected To Increase 59% By 2030
Technological advancements, the prevalence of chronic diseases, and the aging U.S. population are driving the growth of the DME market. By 2030, the U.S. DME market is projected to reach $87.6 billon. In 2021, 40% of the top DME products were related to respiratory needs due to COVID-19 and its lingering symptoms.

2022 Medicare Reimbursement Changes Prioritize Value-Based Care The Centers for Medicare & Medicaid Services (CMS) issued two final rules that will impact Medicare certified home health agencies (HHAs) beginning in 2023. First, the Home Health Prospective Payment System that updates Medicare payments and rates will increase Medicare payments to HHAs by 0.7%. Second, CMS expanded the Home Health Value-Based Purchasing (HHVBP) Model from nine U.S. states to all certified HHAs nationwide.

Mergers And Acquisitions Increase As The Pandemic Created A Shift To Home-Based Care
Home care mergers and acquisitions increased 39% from 2019 to 2022. A total of 166 home care mergers and acquisitions were reported in 2021. Home care agencies’ ability to prevent costly hospital admissions and support patients’ activities of daily living are driving the increase of mergers and acquisitions.

Executive Summary
Home Care Market Overview
Home Care Patient Growth Increases Amid Caregiver Shortage
Home Health Medicare Payments To Increase In 2023
Medicaid Expands Home Health Coverage Throughout The U.S
Retention Is The Top Home Care Staffing Challenge
Labor Shortages Increase The Cost Of Home Health Aide Services By 12%
High Poverty Rates Among Private-Duty Home Aides Persist Despite Wage Increases
Aging Population Is Primary Driver Of Home Aide Workforce Demand
Durable Medical Equipment Market Expected To Reach $87 Billion By 2030
Respiratory Devices Are The Top DME Product Category
Hospice Admissions Rebound From Pandemic Low
Kindred Healthcare Among Largest Home Health And Hospice Providers
Home Infusion Market To Grow 7.9% By 2030
Electronic Health Records To Benefit Most From Home Care Interoperability
Home Care Mergers And Acquisitions Rising Post-Pandemic
Clarivate Lists Top Home Care Products Sold Through Distribution

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