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The rapid growth of home healthcare services in the U.S is improving patient outcomes and experiences while reducing healthcare costs. Home healthcare allows patients to receive medical treatment, rehabilitation or hospice care in the comfort of their own homes with support from doctors, nurses and other professionals.
The global U.S. Home Healthcare Market is estimated to be valued at US$ 25.5 Bn in 2024 and is expected to exhibit a CAGR of 7.3% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
The major players in the U.S home healthcare market include Medline Industries Inc., Medtronic Plc, 3M Healthcare, Baxter International Inc., B. Braun Melsungen AG, Hoffman-La Roche AG, and Nxstage Medical (Fresenius Medical Care). These companies have extensive service offerings and geographic reach supporting the growing home healthcare needs.
Market Dynamics
The U.S. home healthcare market is driven by the rising geriatric population susceptible to chronic diseases and preference for receiving medical care at home. Technological advancements are also fueling market growth through remote patient monitoring solutions, telehealth services and integration of AI/IoT. These innovations enable effective chronic disease management, early diagnosis and preventive care – improving patient outcomes and quality of life.
Market Challenges
The U.S. home healthcare market faces some challenges like rising operating costs, shortage of caregivers, and stringent regulatory framework. Rising operating costs such as labor costs, training & certification costs of caregivers have reduced profit margins of home healthcare agencies. The shortage of trained caregivers and nursing staff has constrained the market growth as it has become difficult for agencies to cater to the rising demand. Further, complex regulatory compliances and procedures for service approvals have increased the entry barriers for new players.
PEST Analysis
Political: The market is governed by various Acts passed by U.S. federal government including Patient Protection and Affordable Care Act which has expanded health insurance coverage.
Economic: Reduced hospitalization costs and shifting preference towards in-home care due to COVID-19 pandemic has boosted the economic growth of the sector.
Social: Growing geriatric population requiring long-term care and increasing preference for receiving medical care at home has fueled the social demand.
Technological: Adoption of digital health solutions like remote patient monitoring devices and mHealth apps have enhanced access and quality of home-based medical services.
Geographical Regions
The Western U.S. region accounted for the largest market share in 2021 owing to higher disposable income, focus on independent living, and prominent regulatory approvals of home healthcare agencies in states like California. The Southern region is expected to witness the fastest growth during the forecast period due to increasing healthcare spending and rising prevalence of chronic diseases in states such as Florida and Texas.
Key Takeaways
Growing demand for home-based solutions owing to COVID-19 pandemic, increased patient preference towards receiving medical care in comfortable home environment, initiatives by public and private organizations to shift treatment locations from hospitals to home settings, and technological advancements in connected healthcare devices for remote monitoring are the major factors driving the demand for U.S. home healthcare services. Major players are strategizing global expansion through partnerships and mergers to cater to the growing market demand. Additionally, growing investments in development of digital healthcare solutions will accelerate technological innovations and provide quality care to more patients. With rising healthcare costs and aging population, demand for home healthcare services will continue to grow during the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
