The demand is driven by site-of-care shifts, technology advancements, and growing preference for in-home services, a new report finds.
RT’s Three Key Takeaways:
- Demand for In-Home Healthcare: The US home healthcare market is projected to see a 22% increase in demand by 2034, fueled by shifts in care settings and advancements in technology.
- Workforce Shortages Remain a Key Challenge: Staffing issues are a concern for home care providers, with many citing workforce shortages as the biggest obstacle to meeting growing demand.
- Value-Based Care Influences Market Operations: Over 60% of home care executives expect value-based care contracts to comprise at least half of their revenue by 2027, prompting operational adjustments across the industry.
Demand is projected to surge 22% by 2034 for in-home healthcare, according to ResearchAndMarkets.com’s new 2024 United States Home Care Market Report.
Driven largely by site-of-care shifts and technology advancements, the US home care market continues to grow and is valued at $286 billion in 2024, according to the report.
The home care market includes home health, durable medical equipment (DME), hospice and palliative care, therapy, and personal care services. As more high-acuity care transitions to the home, 31% of home health referrals originate from hospitals in 2024.
Caregiver Shortages Strain Growing Demand for Home-Based Care
According to the report, 31% of surveyed home care leaders identified home health as the greatest home care growth area for 2024. Reflecting the growing demand for home care services, home health volumes are expected to increase 22% by 2034.
Staffing issues remain the biggest challenge for home care providers in 2024.
Alternate Healthcare Delivery Model Impacts Home Health Operations
Value-based care emerged as a top trend for both home care providers and payers in 2024. Seventy percent of surveyed home care leaders reported their organization made operational changes resulting from value-based care in 2023.
By 2027, over 60% of home care executives expect that value-based care contracts will account for at least half of their revenue.
Home Care M&A Remain Below Pre-Pandemic Levels
A total of 106 home care mergers and acquisitions occurred in 2023, a 40% decline from a pandemic-induced peak of 179 transactions in 2021.
Home care mergers and acquisitions in the first and second quarters of 2024 were at the lowest levels since 2019. Of the 20 mergers and acquisitions that occurred in the second quarter of 2024, private equity accounted for six.
DME Market to Surpass $100 Billion by 2030
Respiratory devices have been the top DME product since the COVID-19 pandemic. In 2023, 55% of all US DME orders were for respiratory devices and equipment including humidifiers, nebulizers, and portable oxygen concentrators.
Fueled by the aging population, advancements in medical technology, and expanded insurance coverage, the US DME market is projected to grow 53% by 2030.
Home Infusion Volumes Projected to Climb 14% by 2033
The home infusion therapy market is expected to experience an 89% increase in revenue by 2034. In 2024, the home infusion therapy market serves 3.2 million patients annually, with 60% of those patients preferring to receive their infusion therapy at home.
As healthcare transitions from inpatient to outpatient settings, infusion volumes are projected to rise. By 2033, outpatient chemotherapy infusions are projected to increase by 15%.
More information about this report can be found here.
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