U.S. HOME HEALTHCARE MARKET ANALYSIS

Market Challenges And Opportunities

However, factors such as risks associated with home healthcare equipment and shortage of skilled or trained workforce are expected to hamper the market growth.

U.S. Home Healthcare Market Drivers:

High prevalence of chronic diseases to propel market growth

One of the key factors expected to augment growth of the U.S. Home Healthcare market during the forecast period is the rise in burden of chronic diseases in the region. Such a high burden of chronic diseases leads to an increase in demand for home healthcare services and is expected to boost the market growth. According to the U.S. Centers for Disease Control and Prevention (CDC), chronic diseases, such as heart disease, cancer, and diabetes, are the leading causes of death and disability in the United States. Moreover, 6 in 10 individuals in the U.S. live with at least one chronic disease, like heart disease and stroke, cancer, or diabetes.

Growing geriatric population to underpin market growth

Another factor which is driving growth of the U.S. Home Healthcare market is the growing geriatric (aging) population in the U.S. For instance, the population is aging rapidly due to a decrease in the birth rate and increase in life expectancy, and may result in high prevalence of chronic diseases, which in turn increases demand for home health services/solutions. According to the U.S. Census Bureau, more than 56 million adults ages 65 and older live in the U.S., accounting for about 16.9% of the nation’s population. Moreover, the total number of adults ages 65 and older is projected to rise to an estimated 85.7 million by 2050 (22% of the overall population).

U.S. Home Healthcare Market Opportunities:

Increasing demand for better healthcare services is expected to offer lucrative growth opportunities for players in the U.S. Home Healthcare market. For instance, in March 2021, Humana announced the launch of CenterWell Home Health division. CenterWell works in collaboration with patients’ healthcare providers to bring exceptional care directly to comfort and safety of their homes. Skilled nurses and therapists will help people recover from illness/injury and learn to manage their health with confidence so they can remain independent and enjoy the higher quality of life. This in turn is expected to augment the growth of the market.

Increase in preference for personalized care is expected to provide significant growth opportunities for players in the U.S. Home Healthcare market. With the rise in preference for personalized care, the demand for home health services is also increasing with rapid pace. For instance, in November 2020, Baptist Health announced a joint venture with BAYADA Home Health Care to expand upon the services provided by Baptist Home Health for more than 25 years. The combined organization, Baptist Home Health Care by BAYADA, will have the capabilities to serve more patients at home, where they can recover and thrive best.

U.S. Home Healthcare Market Restraints:

Risks associated with home equipment to hinder market growth

One of the key factors expected to hamper growth of the U.S. Home Healthcare market is the risks associated with home healthcare equipment. Home healthcare equipment allow patients to receive healthcare services at the convenience of their home; however, some risks are associated with the use of home healthcare equipment, such as fire hazards due to electrical problems, malfunction & damage to the equipment, and software breakdown, among others. Such risks with home healthcare equipment restrain the growth of the market.

Lack of skilled/trained workforce to hamper market growth

Another factor which is hampering the growth of the U.S. Home Healthcare market is the shortage of workforce or lack of skilled/trained workforce. Increasing demand for home healthcare services is, in turn, contributing to shortage of clinicians required to provide services. The state of California is expected to witness largest shortage of nursing staff, with an expected shortfall of 44,500 nurses by 2030. The shortage can lead to an inability of care providers to fill gaps in their work shifts and the hiring of temporary staff, which may result in higher costs.