Hospices and Palliative Care Centers in the US Industry Market Research Report Now Available from IBISWorld

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The Hospices and Palliative Care Centers industry has grown strongly over the past five years, and the outlook period through 2017 should be no different. Rising reimbursement from Medicare and Medicaid coupled with an aging population has propelled strong growth. However, healthcare reform could lessen the amount of reimbursement from assistant programs, and will threaten industry profit and revenue. For these reasons, industry research firm IBISWorld has added a report on the Hospices and Palliative Care Centers industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

More than 40.0% of all deaths in the United States in 2010 were under hospice care

The Hospices and Palliative Care Centers industry has grown rapidly for more than a decade, aided by continued Medicare and Medicaid reimbursement support, an aging US population, rising healthcare costs and a general trend toward at-home end-of-life care. “The industry continued growing straight through the economic downturn as relevant funding grew and the number of facilities offering hospice and palliative services did as well,” said IBISWorld industry analyst Brian Bueno. IBISWorld estimates 7,789 facilities will operate in the industry in 2012, generating $18.9 billion in revenue. In 2012 alone, revenue is expected to jump 8.4%, marking an annualized rate of growth of 9.8% since 2007.

Over the past decade, the number of Americans seeking hospice care has continued to increase dramatically. According to the National Hospice and Palliative Care Organization, approximately 41.9% of all 2010 deaths in the United States were under the care of a hospice program. Furthermore, of all Medicare decedents in 2001, 18.8% accessed hospice for three or more days. By 2007, the proportion of Medicare decedents accessing three or more days of hospice services had increased to 30.1%. Aiding such growth has been the rising number of Americans aged 65 and older that are Medicare eligible. Over the five years to 2012, funding for Medicare is projected to increase at an average annual rate of 4.4% to $761.4 billion. Similarly, over that period, the share of US population aged 65 and over jumped from 12.6% to 13.6% as that age group grew faster than the general population.

The Hospices and Palliative Care Centers industry is anticipated to continue growing strongly through 2017. According to Bueno, demand will escalate along with the acceleration in the proportion of the population aged 65 and older, and the subsequent rapid growth in the number of Medicare recipients. The popularity of hospice care centers will also grow as healthcare costs continue to mount and hospitals and physicians increase their recommendation of hospice and at-home end-of-life care. Nevertheless, growth is expected to remain below its potential over the next five years because of impending cuts to hospice reimbursement rates.

The industry is highly fragmented, comprised of large national corporations, smaller community-based organizations and non-profits, which account for about 49.0% of industry firms. The top four providers account for about 10.0% of industry revenue. While the number of providers is increasing, to fall in line with the growing demand for services, so is the number of mergers. According to the Braff Group, a Pittsburgh-based merger-advisory firm, there were a record 17 hospices acquired in the first six months of 2011. While consolidation is expected to continue over the next five years, the number of providers entering the industry will be greater. For more information, visit IBISWorld’s Hospices and Palliative Care Centers report in the US industry page.

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IBISWorld industry Report Key Topics

This industry provides programs that offer symptom relief and pain management for patients with life-terminating illnesses. Hospice care applies to companies that administer care (in terms of comfort rather than cure) to patients with life-limiting illnesses or diseases. Non-hospice palliative care is provided to individuals with serious, complex illnesses, whether they are expected to recover fully; this segment is excluded from this industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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