Rise in Elderly Population, Expanding Government Funding to Boost US Home Healthcare Revenues

12/3/2021

Cleveland, OH, December 3, 2021 — US home healthcare revenues are forecast to grow 6.6% yearly in nominal dollars through 2025, according to Home Healthcare: United States, a report recently released by Freedonia Focus Reports. Operators of home healthcare agencies are expected to benefit from rapid gains in the elderly population, the preference among most elderly and disabled individuals to remain at home, and ongoing funding support among federal and state government agencies for home healthcare services. The population of individuals aged 75 and older is projected to expand 4.0% annually from 2020 to 28.2 million persons in 2025. Other key factors that will support demand for home healthcare services include:

  • the advantage of providing care at home, which can lead to more satisfied individuals and improved health outcomes
  • cost advantages over skilled nursing facilities
  • improving technology that allows more types of care to be provided in the home
  • lack of access to institutional care in some rural areas

In addition, if the US Congress passes the Build Back Better Act, it would increase government funding for Medicaid home care services, and support growth in the revenues of home healthcare agencies.

Further advances will be restrained by:

  • high out-of-pocket costs that many patients cannot afford unless supported by government programs
  • the fact that some patients need a higher level of care than can be safely delivered at home
  • the potential unavailability or prohibitively high cost of home healthcare in many rural areas due to the long time and distance nurses must drive 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 excluded from the scope of this report. Revenues are also restrained by the fact that some individuals refuse to receive healthcare services at home.

In 2021, total revenues are projected to grow 3.6%, representing an improvement over the 2.9% annual pace in 2020 pace that was limited by the COVID-19 pandemic. The strong progress in vaccinating the elderly in 2021 supported revenues as it minimalized fear over inviting home care workers into homes.

These and other key insights are featured in Home Healthcare: United States. This report forecasts to 2021 and 2025 US home healthcare revenues in nominal US dollars. Total revenues are segmented by operator type in terms of:

  • for-profit
  • nonprofit

Total revenues are also segmented by market as follows:

  • Medicare
  • private healthcare insurance
  • Medicaid
  • out-of-pocket
  • other sources such as charitable contributions and private grants, long-term care insurance, and the US Department of Veterans Affairs

To illustrate historical trends, total revenues and the various segments are provided in annual series from 2010 to 2020. In addition, the net profit margin and the number of firms, establishments, and employees are provided for the 2010-2019 period.

This report represents the revenues of establishments primarily engaged in providing home healthcare services. Revenues represent both employer and nonemployer establishments. Excluded from the scope of this report are home healthcare services provided by the establishments of physicians and other health practitioners engaged in the independent practice of their profession. Also excluded from the scope of this report are services provided by caregivers who are directly employed by the patient or family, and care that is provided by family members.

This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Survey has a sample size of approximately 2,000, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.

More information about the report is available at:

https://www.freedoniafocusreports.com/Home-Healthcare-United-States-FF40055/?progid=91541