U.S. POST-ACUTE CARE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

The high costs associated with post-acute care in the U.S. can hamper the market growth. Post-acute care refers to the care received after being discharged from a hospital, which can include skilled nursing facilities, home health agencies, inpatient rehabilitation facilities, and long-term care hospitals. While post-acute care plays an important role in the continuing recovery of patients, it also tends to be very expensive. According to the data from the Centers for Medicare and Medicaid Services, national health expenditure on post-acute care had increased from US$ 185 billion in 2012 to US$ 274 billion in 2020. This rising expenditure is primarily due to increasing utilization of post-acute care services, as well as growing demand for more intensive levels of care as patients present with more complex medical conditions. The costs of skilled nursing facilities, home health care, and inpatient rehabilitation facilities in particular have increased substantially in recent years.

Market Opportunities: Adoption of telehealth and virtual care

The COVID-19 pandemic has boosted adoption of telehealth and virtual care services in the U.S. healthcare system tremendously. With the necessity of social distancing and limiting in-person visits, both patients and providers rapidly embraced remote care alternatives. This has provided a glimpse into how telehealth can reshape post-acute care, which includes skilled nursing facilities, inpatient rehabilitation facilities, long-term care hospitals, and home health. The flexibility and convenience of virtual visits makes telehealth well-suited for managing post-acute care patients who have complex conditions and frequent need for follow-up. As patients recover from illnesses and injuries, virtual care allows providers to regularly monitor their progress without need of in-person appointments. Government organizations have also supported expanding access to telehealth amid the pandemic. The Centers for Medicare and Medicaid Services (CMS) moved to cover telehealth at parity with in-person visits on a temporary basis in 2021. This opened up telehealth to millions of Medicare beneficiaries who previously had limited access. As baby boomers age, their increased demand for post-acute services coincides with a growing openness to digital health technologies. If CMS makes permanent some of the telehealth flexibilities put in place during the pandemic, it could remove barriers preventing telehealth from becoming a standard part of post-acute care. Permanent coverage and payment policies from CMS will be vital to sustain long-term virtual care adoption.