New York, NY (PRWEB) February 07, 2014
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 shift 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. In 2014 alone, revenue is expected to grow in line with annualized growth since 2009.
Over the past decade, the number of Americans seeking hospice care has continued to increase dramatically. Moreover, of all Medicare decedents in 2001, a significant proportion accessed hospice for three or more days. By 2007, the proportion of Medicare decedents accessing three or more days of hospice services had increased. Aiding such growth has been the rising number of Americans aged 65 and older that are Medicare eligible. Over the five years to 2014, funding for Medicare is projected to increase at an average annual rate. Similarly, over the same period, the number of adults aged 65 and over in the United States will grow at an annualized rate.
The Hospices and Palliative Care Centers industry is highly fragmented, composed of large national corporations, smaller community-based organizations and nonprofits, which account for about a significant number of industry firms (see IBISWorld report OD4952 for major player market shares). The industry is anticipated to continue growing strongly over the next five years. Demand will escalate as the proportion of the population aged 65 and older continues to expand. However, according to IBISWorld Industry Analyst Jocelyn Phillips, “hospice care centers have recently come under public scrutiny for fraudulent enrollments.” As a result, “Medicare has limited the amount of time a patient can qualify for hospice care (without an extension request from a medical professional) to six months,” says Phillips. Consequently, growth is expected to remain below its potential over the next five years: IBISWorld estimates revenue will grow at a lower average annual rate by 2019.