by The U.S. post-acute care market encompasses services such as skilled nursing facilities, home health care services, long-term acute care hospitals, and inpatient rehabilitation facilities aimed to accelerate recovery of patients post-hospitalization. Rising prevalence of chronic diseases coupled with an aging population has increased demand for post-acute services.
The U.S. Post-acute Care Market is estimated to be valued at US$ 614.2 Bn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the U.S. post-acute care are Kindred Healthcare, Encompass Health Corporation , HCR ManorCare, Brookdale Senior Living, Genesis HealthCare, Amedisys, Inc., LHC Group, Inc., Select Medical Holdings Corporation, Vitas Healthcare , Post Acute Medical, LLC, SavaSeniorCare Administrative Services LLC, LifeCare Health Partners, Extendicare, Ensign Group, Inc., Sunrise Senior Living, LLC, BAYADA Home Health Care. The key players focus on adopting advanced technologies for disease diagnosis and offer high quality services to patients.
The U.S. Post-acute Care Market growth increasing investment by key players for business expansion through partnerships and mergers & acquisitions is expected to offer potential growth opportunities. For instance, in 2020, Encompass Health completed its acquisition of 17 home health and hospice locations from Simplura Health Group.
Furthermore, rising geriatric population and the growing prevalence of chronic diseases across the globe is anticipated to drive the demand for post-acute care services in international markets. Key players are expanding their geographical reach through collaborations with regional healthcare providers to tap growth opportunities in high potential markets.
Market drivers
The U.S post-acute care market is primarily driven by rapid growth of the geriatric population which is more likely to require post-hospitalization care and services. As per the U.S. Census Bureau, the population aged 65 years and older is expected to reach 95 million by 2060 from 56 million in 2018. The older population base is increasingly susceptible to chronic conditions and disabilities necessitating post-acute care. Additionally, advancements in treatment options have increased life expectancy rates further contributing to demand in the market. Government policies and initiatives supporting aging-in-place are also favoring the adoption of home-based post-acute services.
PEST Analysis
Political: The post-acute care market in the US is regulated by various government agencies like the CMS(Centers for Medicare & Medicaid Services) which establishes rules and regulations regarding quality standards, payment processes etc. These regulations impact the operations and finances of market players.
Economic: With the aging US population driving up demand for post-acute and long-term care, the economic condition of the country will be a key determinant of market growth over the forecast period. Rising healthcare spending per capita favors market expansion.
Social: As traditional family support systems weaken, there is greater social acceptance of institutional care options. Also, increasing women workforce participation increases demand for post-acute facilities and services.
Technological: Technologies like telehealth and remote patient monitoring are being incorporated to enhance care delivery and better monitor patients remotely. Wearable devices and digital apps also support independent living for elderly. Newer facilities feature technologies for improved quality of life.
Geographical concentration
The U.S. states with the highest concentration of post-acute care facilities in terms of value are California, Florida, Texas, New York and Pennsylvania. These states collectively account for over 40% of the country’s skilled nursing facilities due to factors like large and aging populations, high healthcare infrastructure and expenditure.
Fastest growing region
The South region of the U.S. comprising states like Texas, Florida, North Carolina, Georgia and others is expected to witness the fastest value growth in the post-acute care market during the forecast period. Supported by economic and population growth, increasing demand from expanding retiree bases, and improved access to Medicaid funds and insurance coverage, the southern states will drive higher investment and utilization of post-acute services.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Vaagisha Singh
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.LinkedIn
