Home Care Market Report

Home Care Market Report

Market At-A-Glance

In 2023, the home care market is valued at $264.3 billion. The market includes home-based medical care, hospice, home care and personal services, and durable medical equipment (DME). By 2025, between ten and 25% of care delivered in hospitals, outpatient clinics, physician offices, skilled nursing facilities, and urgent care is projected to shift to the home.

Key segments of the home care market include:

Home health: 52%
DME: 28%
Hospice and palliative care: 15%
Personal care services: 3%
Therapy: 2%

Home Health Agencies Challenged To Meet Rising Demand

Monthly referral volumes to home health agencies (HHAs) from hospitals in 2022 were 21% higher than in 2019. As referral volumes increased, the rejection rate reached an all-time high of 76% in December 2022. In 2023, the continued rising demand for post-acute care is being driven by increased referrals for higher acuity patients along with the pandemic induced acceleration in demand for home-based services.

Higher Acuity Home-Based Care Is A Top Priority For Growth

Fifty-one percent of surveyed home care providers plan to pursue delivery of higher acuity patient care at home such as the skilled nursing facility (SNF) at home model or hospital at home model in 2023. The hospital at home model surged during the Public Health Emergency (PHE) when the Centers for Medicare & Medicaid Services(CMS) allowed Medicare certified hospitals to treat patients with inpatient-level care at home. CMS’ Acute Hospital Care At Home program was extended and has a current expiration date of December 31, 2024.

Advancements In Home Care Technologies Improve Patient And Caregiver Experience

Software and data collection advancements in home health technology that allow access to both care caregivers and patients are improving the patient experience and caregiver work environment. Fifty-seven percent of surveyed home caregivers support the adoption of home care technologies that improve patient monitoring and support regulatory compliance. In 2023, the top areas for technology investments include remote patient monitoring (RPM), patient engagement, and staff management.

Demographics, Technology, And Consumer Demand Are Driving The Durable Medical Equipment Market

In 2023, the U.S. DME market is valued at $75.4 billion and is projected to grow 52% to reach $114.5 billion by 2031. The DME market growth is driven by an aging population with chronic diseases, a preference for home-based care enabled by RPM technology, and advancements in the size, portability and accessibility of equipment. Out-of-pocketpayments represent the largest DME revenue stream followed by Medicare and private insurance. Medicare’s share of payments is projected to reach 26% by 2031.