The care at home industry is using the power of consolidation as a strategic lever for scaling revenue. Moving to consolidate can not only fortify an organization’s competitive edge but can also set the stage for sustained financial growth. During the 2024 Axxess, Growth, Innovation and Leadership Experience (AGILE) experts examined how the care at home industry through consolidation has outpaced other sectors in healthcare for the first time.
Jennifer Sheets, Industry Advisory Board Member and Devin Griffith, Chief Operating Officer of AuthoraCare Collective, discussed the current state of the home and hospice care industry, the forces and conditions driving consolidation in the industry, the growth rates of the home health and home care services industry and the impact of changing healthcare conditions.
Projected Growth Rates
“Home health crossed and began growing faster than any other sector,” Sheets noted while sharing data highlighting the growth.
- U.S. home healthcare services market is expected to expand at a compound annual growth rate of 7% from $103 billion to $173 billion by 2026.
- U.S. hospice market is projected to grow at a 7-8% annual growth rate through 2030
- U.S. palliative care market was projected to grow from $49.42 billion in 2018 to $75.50 billion in 2023.
- U.S. home infusion therapy market is expected to expand at a compound annual growth rate of 7.5% from 2022 to 2030.
Consumer Preferences
“People want to age in place, people want to stay in their home, they want to be independent as long as possible,” explained Sheets.
- 91% prefer post-hospital care at home
- 5% would prefer a nursing home
- 90% stated having choices is important
- 87% support the expansion of options for care at home
Consumer Channels
“One of our most emerging consumers of the last few years in our space is the payers. They are significant consumers. And I think one of the areas where consumerism is really playing out is in Medicare Advantage,” said Griffith.
Griffith explained that patients and families are deciding whether to stay on traditional Medicare or move to a Medicare Advantage plan.
National and Regional Landscape
“There are a few key themes that we wanted to highlight around the national landscape that I think is really highlighting that need for scale for efficiencies and will continue to drive consolidation into the future,” said Griffith.
- Changes are starting to take shape as hospice, home health, home care and palliative care become further integrated into the healthcare system
- Rapid movement to build a continuum of care as more hospices recognize the imperative to move upstream and serve patients and families earlier
- Workforce and technology are paramount, intertwined and the big differentiator that requires increased investments
- Systematic focus on health equity
- Moving from episodic care to longitudinal care
“You have to have a longitudinal care component so that you are making sure the patients are in the right program and service at the right time and the right setting, so that you are using your resources as efficiently as possible across those continuums of care,” Griffith said.
With more than 350 attendees, more than 50 sponsors and countless connections made, AGILE was a massive success for everyone. Check out the recap video and mark your calendar for AGILE 2025, May 5-7 in Dallas.
