Home Care Providers in the US Industry Market Research Report from IBISWorld Has Been Updated
Los Angeles, CA (PRWEB) November 29, 2013 -- The Home Care Providers industry is quickly becoming one of the fastest growing healthcare industries in the United States. “Home care saves billions of dollars every year by allowing patients to avoid high-cost healthcare settings, such as hospitals,” according to IBISWorld Industry Analyst Jocelyn Phillips. An aging US 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 past five years, these factors have contributed to an annualized revenue growth rate of 4.8% to $74.2 billion, including a 4.2% jump in 2013.
Despite strong growth, industry profitability has been under pressure in recent years. Government programs (including Medicare and Medicaid) generate the majority of home care service payments. Over the past five years, federal and state budgets have been shrinking, and sequestration has only exacerbated this decline. “Decreasing federal funding has resulted in reimbursement cuts for the industry and has suppressed operating profit,” says Phillips. Industry operators have increased consolidation activity to increase margins; larger companies are better able to negotiate with suppliers and can acquire the medications and materials used in home care at lower prices. Since 2008, the number of companies in the industry has grown at a slower annualized rate of 3.8%, relative to the previous five-year period. In 2013, the number of home care companies is expected to reach 303,440 in the United States.
IBISWorld expects industry consolidation to continue in the five years to 2018 in light of reimbursement cuts that are expected to persist and a shortage in skilled personnel. To spur new demand and maintain pricing, industry operators are expected to develop healthcare solutions aimed at new markets, such as chronic disease management, a system of coordinated healthcare interventions and communications with an emphasis on patient self-care. This area of healthcare is anticipated to grow in upcoming years, which will provide the industry with the opportunity to compete effectively with institutional care providers like hospitals.
For more information, visit IBISWorld’s Home Care Providers in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Home Care Providers 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.
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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.
Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]
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