Home Care Providers in the US Industry Market Research Report Now Available from IBISWorld

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Home is where the care is for a growing number of people in the United States. Industry growth has been fostered by an aging population, the prevalence of chronic disease, strengthening physician acceptance of home care and a continued movement toward cost-efficient treatment options from public and private payers. Despite strong growth, industry operating profit has been under pressure. For these reasons, industry research firm IBISWorld has added a report on the Home Care Providers industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The aging population and the prevalence of chronic diseases underpin industry growth.

The Home Car Providers industry is becoming one of the fastest growing healthcare industries in the US. According to IBISWorld industry analyst Anna Son, "home care saves patients billions of dollars every year by treating them in their homes instead of 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. During the five years to 2012, these factors have contributed to an average annual revenue growth of 4.6%. In 2012, revenue is expected to increase 3.6% to $69.8 billion.

Despite strong growth, industry operating profit has been under pressure. The largest payers for home care services, such as Amedisys Inc. and Gentiva Health Services Inc., are government programs that include Medicare and Medicaid. Federal and state budgets have been shrinking, and the recession further reduced them. Thus, declining federal funding played a role in operating profit margin falling to an expected 6.9% of revenue in 2012, compared with 7.1% in 2007. "Industry operators have increased consolidation activity in an effort to combat lower profitability," says Son. The Home Care Providers industry is traditionally highly fragmented and the largest four firms in this industry are expected to account for a relatively small portion of total revenue in 2012. Although concentration remains low, larger companies have been expanding through mergers and acquisition. Larger companies are better able to negotiate with suppliers and can acquire the medications and materials that are used in home care at lower prices. Thus, Census Bureau data suggests that concentration has increased over the past five years.

Consolidation is forecast to continue in the five years to 2017, in light of reimbursement cuts expected to persist and skilled personnel shortages. These factors will strain operating profit further, causing margins to contract moderately by 2017. In an effort to spur new demand and maintain pricing, industry operators are projected to focus more on chronic disease management, which is a system of coordinated healthcare interventions and communications with the emphasis on patient self-care. This area of healthcare is projected to grow in upcoming years, which will provide the industry with the opportunity to compete effectively with institutional care providers, such as hospitals. Industry revenue is forecast to grow at a moderate rate during the five years to 2017. For more information, visit IBISWorld’s Home Care Providers in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes companies that primarily provide services in the home. These services may be medical or nonmedical and include services such as skilled nursing care, personal care, homemaker and companion services, physical therapy and medical social services.

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
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