Home again: Demand for services will remain high, but cuts in federal funding threaten profitability

The Home Care Providers industry is becoming one of the fastest growing healthcare industries in the United States. Home care saves patients billions of dollars every year by treating them in their own homes instead of in hospitals. An aging population, the prevalence of chronic disease, growing physician acceptance of home care, medical advancements and a movement toward cost-efficient treatment options from public and private payers have all fostered industry growth. Over the five years to 2017, industry revenue is expected to grow. Despite strong growth, industry profitability has been under pressure. Consolidation is forecast to continue over the five years to 2022 in light of reimbursement cuts that are expected to persist and a shortage in skilled personnel...read more.

Industry Statistics & Market Size
Revenue
$93bn
Annual Growth 12-17
4.0%
Forecast Growth 17-22
Profit
Employment
1.9m
Businesses
417,966
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Industry operators have increased consolidation activity in an effort to combat lower profitability
  • Companies have consolidated and focused on providing specialized services
  • Home care providers have benefited from the aging population, a trend that is forecast to continue
  • Industry Report - Industry Analysis Chapter

    The Home Care Providers industry, wherein skilled professionals provide medical and caregiver assistance to patients in their own homes, is a highly fragmented industry with many small players offering a wide variety of home care services to an aging population. Relatively low barriers to entry and increasing demand for services keep the industry competitive; in some states where licensing is not required for nonmedical care, an individual with a personal vehicle may be enough to constitute a business. Larger industry operators do exist, but the nature of industry services (largely labor intensive, with low capital requirements) provides few incentives to accomplish economies of scale. Non...purchase to read more.

    Additional Insights for the Home Care Providers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Home Care Providers Industry are

  • Recommendation/accreditation from authoritative sources
  • Effective quality control
  • Ability to take advantage of government subsidies and other grants
  • IBISWorld analysts also discuss how external factors such as Federal funding for Medicare and Medicaid and Number of adults aged 65 and older in the Home Care Providers industry impact industry performance..

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    What is the Home Care Providers Industry?

    Companies in this industry primarily provide services in the home. These services may be medical or nonmedical and include skilled nursing care, personal care, homemaker and companion services, physical therapy and medical social services. This industry also includes in-home hospice care providers.

    Industry Products
  • Traditional home healthcare and home nursing care
  • Home hospice
  • Homemaker and personal services
  • Home therapy services
  • Industry Activities
  • Providing homemaker and companion services
  • Administering in-home physical therapy
  • Providing in-home hospice care
  • Providing 24-hour home care
  • Administering in-home occupational and vocational therapy
  • Providing in-home dietary and nutritional services
  • Administering speech therapy
  • Providing in-home medical care
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Federal funding for Medicare and Medicaid
  • Number of adults aged 65 and older
  • Number of people with private health insurance
  • Per capita disposable income

  • Current Performance
  • Consolidation and specialization
  • Reimbursement risk remains
  • Chart: Revenue Growth

  • Industry Outlook
  • Shift to chronic disease management
  • Benefits of healthcare reform
  • Impact of Medicare cuts
  • Employment and wages on the upswing
  • Table: Home Care Providers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Home Care Providers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Health & Medical Insurance
  • Primary Care Doctors
  • Specialist Doctors
  • Hospitals
  • Retirement Communities
  • Consumers

  • Key Selling Industries
  • Administration of Government Programs
  • Brand Name Pharmaceutical Manufacturing
  • Employment & Recruiting Agencies
  • Generic Pharmaceutical Manufacturing
  • Glasses & Contact Lens Manufacturing
  • Medical Instrument & Supply Manufacturing
  • Medical Supplies Wholesaling

  • Products & Services
  • Traditional home healthcare and home nursing care
  • Home hospice
  • Home therapy services
  • Homemaker and personal services
  • Other
  • Chart: Home Care Providers Industry Products and Services Segmentation

  • Demand Determinants
  • Affordability and insurance coverage
  • Aging population

  • Major Markets
  • Medicare
  • Medicaid
  • Private insurance
  • Out-of-pocket
  • Other
  • Chart: Major Market Segmentation for the Home Care Providers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Home Care Providers

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Home Care Providers Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Home Care Providers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Home Care Providers Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Adults 65 years and over (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Chronic Disease Management
  • A system of coordinated healthcare interventions and communications for populations with long-term conditions in which patient self-care is significant.
  • Durable Medical Equipment (Dme)
  • Medical equipment used in the course of treatment or home care.
  • Electronic Data Interchange (Edi)
  • The transmission of electronic documents between businesses from one computer system to another.
  • Home Infusion Therapy
  • The administration of medication through a needle or catheter.
  • Homemaker And Companion Services
  • Helping patients with shopping, preparing and serving meals, housekeeping, taking clients to appointments and other daily chores.
  • Hospice
  • A program or facility that provides special care for people who are near the end of life and for their families
  • Personal Care Services
  • Nonskilled assistance provided to individuals in their homes, such as bathing, dressing and light housework.
  • Telehealth
  • The delivery of health-related services and information between patients and providers via telecommunications technologies.
  • Why buy this report?

    IBISWorld’s industry research report on Home Care Providers contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Home Care Providers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Home Care Providers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Home Care Providers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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