New York, NY (PRWEB) December 10, 2014
The Home Care Providers industry in Canada is a mature industry, with a multitude of diverse companies offering services to well-established, growing healthcare markets. Industry providers cater largely to the elderly population, which is growing at a rate exceeding the national population growth rate in Canada. Moreover, industry companies increasingly offer chronic disease care, which makes home care providers an attractive alternative to institutionalized healthcare settings, such as hospitals, which are generally less personal and more expensive. As the population has aged, and chronic disease has become more prevalent, the number of Canadians receiving home care grew an estimated 8.6% per year on average from 2008 to 2013 (latest available data), to more than 1.8 million people (according to the Canadian Home Care Association). As a result, total industry revenue is expected to grow 4.3% per year on average during the five years to 2014, to $5.8 billion.
The Home Care Providers industry has experienced widespread consolidation in recent years, as cost-cutting measures from provincial governments and private insurers have pressured profit margins, inducing industry businesses to merge their operations in order to expand their market share. According to IBISWorld Industry Analyst Jocelyn Phillips, “The total number of industry companies is expected to fall 2.6% during the five years to 2014, and an additional 1.6% during the next five years.” However, this consolidation activity is not reflective of decreased demand: the steadily aging population and increasing demand for chronic disease management has pushed these consolidated businesses to hire more people than ever, with industry employment increasing 3.3% during the past five years.
Cost pressures will, however, slow industry growth somewhat during the next five years. The 2014 expiration of the national Health Accord, which has provided stable federal funding to provincial healthcare programs for the past ten years, is expected to slow industry revenue growth in 2014. “This funding decrease will only have a limited effect on the industry though, as home care providers' capital costs are low, and many patients demanding industry services pay for them out-of-pocket,” says Phillips. As a result, industry revenue is still expected to grow during the next five years, albeit at a slower annualized rate.
For more information, visit IBISWorld’s Home Care Providers in Canada industry report page.
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IBISWorld industry Report Key Topics
This industry primarily provides care services in the home, including both medical or nonmedical services such as skilled nursing care, personal care, homemaker and companion services, physical therapy and medical social services.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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