U.S. Care Services Market Size, Share & Trends Analysis Report By Service (Skilled Nursing Facility, Post-Acute Care, Assisted Living Facility, Hospice And Palliative Care, Remote Patient Monitoring), And Segment - Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2023-2032

The U.S. Care Services market size was estimated at USD 484 billion in 2022 and is expected to surpass around USD 848.15 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 5.77% during the forecast period 2023 to 2032.

Key Takeaways:

• The skilled nursing facility segment dominated the market in terms of revenue in 2022. SNFs provide high-quality care services at a much lower cost as compared to hospitals, generating tremendous demand among investors. Reimbursement rate pressures or the introduction of new payment systems are also impacting the business size.
• Remote patient monitoring is projected to be one of the fastest-growing segments during the forecast period. This can be attributed to the rising demand for home healthcare. Rapid advancement in technology and the majority of chronic patients in the U.S. have shown an inclination toward home healthcare due to convenience, cost-effectiveness, and availability of top-class service in the comfort and safety of home has driven the dependence on these services over the years.
• The COVID-19 pandemic propelled the demand for home healthcare due to the restriction on healthcare facilities resulting in-home healthcare solutions being the only option. Acute care facilities assisted living facilities, hospice care, and SNF, among others, witnessed improvement in new residents at facilities since the latter half of 2020.
• The U.S. care services market has been witnessing several mergers and acquisitions and partnerships resulting in the integration of various services and maximizing revenue. For Instance, In July 2022, Brookdale Senior Living, Inc. sold a significant stake in its outpatient therapy, hospice, and home health business to HCA Healthcare.

U.S. Care Services Market Report Scope

The growing prevalence of chronic diseases, government initiatives, the increasing requirement for nursing homes among the younger population, and the rising elder population are some of the key factors driving the U.S. care services market growth over the years. Moreover, rapid advancement and use of technology-based care services such as app-based teleconsultation, remote patient monitoring, and AI-based therapeutic & monitoring devices are further driving the service demand.

According to the Department of Health & Human Services, 14% of the residents at nursing homes are between the ages of 31 and 64. Around 40% of the adolescents in the U.S. suffer from a chronic disease and are expected to require care services at a younger age. The younger population in the U.S. with disabilities is constantly rising. According to CDC, one in seven young adults suffers from a chronic disorder.

Unnecessary hospitalization often results in higher expenditure and degrades the quality of life. Thus, increasing preference for care settings such as home care, nursing homes, hospice, and assisted living facilities among baby boomers in the U.S. is driving the industry size.

The increasing geriatric population, rising prevalence of chronic conditions, cost-effective treatment, and rising need for wireless and portable systems are some of the major factors driving the remote patient monitoring market growth. The growing incidence of chronic diseases demands disease management and continuous patient monitoring tools are boosting the need for connected care devices. These devices are connected to electronic patient health records and provide access to the required health information during the course of treatment.

Government programs, such as Medicare and Medicaid, along with private health insurance companies and managed care organizations have a significant impact on the care services industry.

The federal and state governments in the U.S. are undertaking initiatives for enhancing the reach & quality of care services across the country. The federal government-initiated training & development programs for the workforce at care facilities, ensuring that the best services were provided at the facilities during the pandemic and in the future as well. 

State governments are also actively undertaking initiatives for care services. For Instance, Washington State Legislature established a public insurance program, providing coverage for SNF, assisted living, hospice, and other care services, which would be applicable from 2025.

Type Insights

Based on type, the U.S. care services market is categorized into skilled nursing, facility, post-acute care, assisted living facility, hospice, and palliative care, remote patient monitoring, home-based primary care/house calls. In 2022, skilled nursing facilities accounted for the largest share of the market due to the increasing demand for nursing care services owing to the high prevalence of chronic diseases among the U.S. population.

The increasing number of patients of all ages suffering from chronic diseases in the U.S. is a major factor driving the growth of skilled nursing facilities. According to CDC, more than 50% of the adults in the U.S. had a chronic condition. Moreover, initiatives being undertaken by the federal government are contributing to the growth of the industry. For instance, the skilled nursing facility value-based purchasing program by the government is seeking to offer incentives to providers based on patient outcomes, encouraging providers to deliver quality services to patients.

Remote patient monitoring is expected to be the fastest-growing segment during the forecast period. This is attributed to the growing incidence of chronic diseases that demands disease management & continuous patient monitoring tools, thereby boosting the need for connected care devices.

Remote patient monitoring systems enable timely intervention, which reduces hospital admission expenses, frequency of re-hospitalizations, and traveling cost of patients & related expenses. The COVID-19 pandemic further propelled the advancement & adoption of remote patient monitoring due to the increase in demand for home healthcare during the pandemic.

Key Companies & Market Share Insights

The U.S. care services market is highly competitive. The top players are adopting various strategies, such as market expansion, mergers & acquisitions, and partnerships to strengthen their presence in the market. For Instance, in November 2021, LHC Group acquired home health, hospice, & therapy assets from HCA healthcare. In August 2021, Humana acquired Kindred at Home, which includes services such as personal care, hospice, and home health. Some of the prominent players in the U.S. care services market include:

• Kindred Healthcare, LLC
• Amedisys, Inc
• Sunrise Senior Living, LLC
• National Healthcare Corporation
• Brookdale Senior Living, Inc
• Capital Senior Living Corporation
• Home Instead, Inc
• Genesis Healthcare, Inc
• Diversicare Healthcare Services, Inc
• LHC Group, Inc

Segments Covered in the Report

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the U.S. Care Services market.

By Type 

• Skilled Nursing Facility
• Assisted Living Facility
• Hospice and Palliative Care
• Post-Acute Care
• Remote Patient Monitoring
• Home-based Primary Care/House Calls