Home Care 2025 Market Report
Description
Market At-A-Glance
The U.S. home care market is projected to reach $314.9 billion in 2025, driven by aging demographics, disease prevalence, and demand for lower-cost, home-based care. The market includes home health, durable medical equipment (DME), hospice and palliative care, home infusion, physical and occupational therapy and personal care services in the home.
Home Care Patient Volumes Continue Rising
Forecasts show home health volumes increasing 32% from 2025 to 2035. During this same time frame, home hospice volumes are expected to increase by 43%, physical and occupational therapy volumes by 31%, and home infusion medications volumes by 26%. Hospitals were expected to be the largest referral sources in 2025.
Staffing Crisis Has Eased, But Recruitment And Retention Difficulties Persist
Staffing remains a top challenge for 55% of home-based care providers in 2025, down from 68% in 2023. Recruitment and retention represent the biggest staffing hurdles in the industry, with providers investing in workplace culture, flexible scheduling, and training and career growth opportunities to retain home care workers in 2025.
Despite the hiring challenges, the number of home care workers jumped nearly 134% from 2014 to 2024. Median hourly wages for home care workers have increased only 28% from $13.07 in 2014 to $16.77 in 2024.
Medicaid Cuts And Proposed Rule Signal Changes To Home-Based Care
The One Big Beautiful Bill Act (OBBBA) is set to reduce federal Medicaid funding and may impact funding for home- and community-based services (HCBS), which give Medicaid beneficiaries opportunities to receive care services in their own homes or communities. In fiscal year 2024, Medicaid spent $108.8 billion on HCBS.
Meanwhile, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule that would update the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. CMS recommends expanding the program to include continuous glucose monitors (CGMs), insulin pumps, and urological and ostomy supplies. The final rule is expected to be released by the end of 2025.
Home Infusion Market Expected To More Than Double By 2034
The home infusion therapy market is valued at $15.1 billion in 2025 and projected to grow to $31.4 billion by 2034. By application, anti-infectives accounted for the largest market segment in 2024. Providers and patients increasingly prefer at-home infusion treatments to avoid hospital-related risks like infections.
The U.S. home care market is projected to reach $314.9 billion in 2025, driven by aging demographics, disease prevalence, and demand for lower-cost, home-based care. The market includes home health, durable medical equipment (DME), hospice and palliative care, home infusion, physical and occupational therapy and personal care services in the home.
Home Care Patient Volumes Continue Rising
Forecasts show home health volumes increasing 32% from 2025 to 2035. During this same time frame, home hospice volumes are expected to increase by 43%, physical and occupational therapy volumes by 31%, and home infusion medications volumes by 26%. Hospitals were expected to be the largest referral sources in 2025.
Staffing Crisis Has Eased, But Recruitment And Retention Difficulties Persist
Staffing remains a top challenge for 55% of home-based care providers in 2025, down from 68% in 2023. Recruitment and retention represent the biggest staffing hurdles in the industry, with providers investing in workplace culture, flexible scheduling, and training and career growth opportunities to retain home care workers in 2025.
Despite the hiring challenges, the number of home care workers jumped nearly 134% from 2014 to 2024. Median hourly wages for home care workers have increased only 28% from $13.07 in 2014 to $16.77 in 2024.
Medicaid Cuts And Proposed Rule Signal Changes To Home-Based Care
The One Big Beautiful Bill Act (OBBBA) is set to reduce federal Medicaid funding and may impact funding for home- and community-based services (HCBS), which give Medicaid beneficiaries opportunities to receive care services in their own homes or communities. In fiscal year 2024, Medicaid spent $108.8 billion on HCBS.
Meanwhile, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule that would update the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. CMS recommends expanding the program to include continuous glucose monitors (CGMs), insulin pumps, and urological and ostomy supplies. The final rule is expected to be released by the end of 2025.
Home Infusion Market Expected To More Than Double By 2034
The home infusion therapy market is valued at $15.1 billion in 2025 and projected to grow to $31.4 billion by 2034. By application, anti-infectives accounted for the largest market segment in 2024. Providers and patients increasingly prefer at-home infusion treatments to avoid hospital-related risks like infections.
Table of Contents
19 Pages
- Home Health Patient Volumes Could Rise 32% Over The Next Ten Years
- Staffing Remains A Major Pain Point For More Than Half Of Home Care Providers
- From 2014 To 2024, Home Care Workers’ Median Hourly Wage Grew Less Than $4
- Proposed Rule Suspends Minimum Wage And Overtime Protections For Home Care Workers
- Labor Costs Drive Up Price For Home Care Services
- States May Reduce Home-And Community-Based Services Following Federal Medicaid Funding Cuts
- Industry Leaders Expect Artificial Intelligence And Remote Patient Monitoring To Transform Home Care
- Hospice Growth Accelerates As Aging Population Learns The Benefits Of End-Of-Life Care
- U.S. Durable Medical Equipment Market Projected To Reach $120.8 Billion By 2033
- Proposed Rule Would Add New Product Categories To DME Competitive Bidding
- Respiratory Equipment Made Up Nearly Two-Thirds Of All U.S. DME Orders In 2024
- Recruitment Is Top Staffing Challenge For DME Providers
- Anti-Infective Therapy Led The Home Infusion Market In 2024
- Home-Based Care M&A Activity In First Nine Months Of 2025 Strongest Since 2022
- Clarivate Lists Top Home Care Products Sold Through Distribution
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