Preference of aging people to stay home for care underpins expansion
CLEVELAND, December 9, 2021 /PRNewswire/ — U.S. home health care revenues are expected to grow 6.6% annually in nominal dollars through 2025, according to Home care: United States, a report recently published by Freedonia Focus Reports. Home health care agency operators stand to benefit from rapid gains in the elderly population, the preference of most elderly and disabled people to stay at home, and continued financial support from federal and state government agencies for home health care services. The population of people aged 75 and over is expected to grow by 4.0% per year from 2020 to 28.2 million people in 2025. Other key factors that will support demand for home health care services include:
the benefit of providing care at home, which can lead to more satisfied people and better health outcomes
cost advantages over skilled nursing facilities
improve technology that allows more types of care to be provided at home
lack of access to institutional care in some rural areas
Additionally, if the US Congress passes the Build Back Better Act, it would increase public funding for Medicaid home care services and support home health care agency revenue growth.
Further progress will be limited by:
high out-of-pocket costs that many patients cannot afford unless supported by government programs
the fact that some patients require a higher level of care than can be safely provided at home
the potential unavailability or prohibitive cost of home health care in many rural areas due to the long time and distance nurses must travel between patients’ homes
In addition, faster gains will be limited by competition from nurses who are hired directly by the individual or their family, which is outside the scope of this report. Incomes are also limited by the fact that some people refuse to receive home health care.
In 2021, total revenue is expected to grow by 3.6%, which is an improvement from the 2.9% annual pace in 2020 which was limited by the COVID-19 pandemic. Strong progress in vaccinating the elderly in 2021 has supported incomes as it has minimized the fear of inviting home care workers into homes.
This and other key information is presented in Home care: United States. This report forecasts 2021 and 2025 US home health care revenues in nominal US dollars. Total revenues are segmented by type of operator in terms of:
Total revenues are also segmented by market as follows:
private health insurance
other sources such as charitable contributions and private grants, long-term care insurance, and the U.S. Department of Veterans Affairs
To illustrate historical trends, total revenues and different segments are provided in annual series from 2010 to 2020. In addition, net profit margin and number of enterprises, establishments and employees are provided for the period 2010 -2019.
This report represents the revenues of establishments primarily engaged in providing home health care services. Revenues represent both employing and non-employing establishments. Excluded from the scope of this report are home care services provided by the establishments of doctors and other health practitioners exercising their profession independently. Also excluded from the scope of this report are services provided by caregivers who are directly employed by the patient or family, as well as care provided by family members.
This report includes the results of an exclusive national survey of US consumers (ages 18 and older). This national survey by Freedonia Focus Reports has a sample size of approximately 2,000 people, selected for the quality of responses and representative of the U.S. population on demographic measures of age, gender, geographic region, race/ethnicity, household income and presence/absence of children in the household.
More information on the report is available at:
About Freedonia Focus Reports
Each month, The Freedonia Group – a division of MarketResearch.com – publishes over 20 new or updated Freedonia Focus reports, providing up-to-date, unbiased analysis on a wide variety of markets and industries. Published in 20 to 30 pages, the Focus report’s coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Additional Health & Biotechnology reports can be purchased at Freedonia Tuning Reports Where MarketResearch.com.
The analysis is intended to guide the busy reader through relevant topics in quick succession, including:
total historical market size and industry production
segmentation by products and markets
identification of market drivers, restraints and key indicators
outlook segment by segment in 5-year forecasts
supply base survey
suggested resources for further study
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SOURCE The Freedonia Group