U.S. Hospice Market Size to Surpass USD 74.02 BN by 2032
The U.S. Hospice market size was estimated at USD 34.19 billion in 2022 and is expected to surpass around USD 74.02 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 8.03% during the forecast period 2023 to 2032.
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Key Takeaways:
U.S. Hospice Market Report Scope
| Report Attribute | Details |
| Market Size in 2023 | USD 36.94 Billion |
| Market Size by 2032 | USD 74.02 Billion |
| Growth Rate From 2023 to 2032 | CAGR of 8.03% |
| Base Year | 2022 |
| Forecast Period | 2023 to 2032 |
| Segments Covered | Location, Type, Diagnosis |
| Market Analysis (Terms Used) | Value (US$ Million/Billion) or (Volume/Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Key Companies Profiled | Kindred Healthcare Inc.; Amedisys; LHC Group, Inc.; Brookdale Senior Living, Inc.; Chemed Corporation; Crossroads Hospice; Seasons Hospice & Palliative Care; Accentcare, Inc.; Heart to Heart Hospice and Oklahoma Palliative & Hospice Care |
The rising geriatric population coupled with the increasing prevalence of chronic as well as age-associated diseases is anticipated to boost the market growth. According to the Population Reference Bureau, the U.S. population aged 65 years and above is expected to reach 95 million by 2060 from 52 million in 2018. The high prevalence of cancer, dementia, and respiratory, cardiovascular, and kidney diseases among the geriatric population is projected to further drive the market growth.
The growing need for quality healthcare services at home along with the increasing Medicare reimbursement for hospice is expected to fuel the market growth over the forecast period. Medicare, Medicaid, and other public and private organizations provide coverage for hospice services. According to the Federal Register, the Centers for Medicare & Medicaid Services (CMS) proposed a 2.7% increase in the payment rate of hospice for FY 2020.The benefits of hospice services include comfort care by professionals and family, less financial burden or reduced out-of-pocket expenses, comprehensive care plans, and family counseling.
In addition, it also helps avoid unwanted procedures, medical treatments, and hospitalizations. In addition, the growing significance of targeted service is anticipated to boost market growth in the coming years. The growing importance of telemedicine is also expected to drive the market. The technology is marking its presence to extend its care to outpatient settings to improve care coordination. The Hospice of Santa Cruz County is launching a telehealth program for palliative and hospice services that would enable medication management, virtual visits, and other services with the help of a grant it received from the Central California Alliance for Health.
Hospice patients spend up to 9 fewer days in the hospital. Hospice is by far the least expensive patient environment, with an average daily per diem of approximately USD 190 (Routine Home Care [days 1–60] each day). Hospice and palliative care benefit the elderly by decreasing hospitalizations, focusing on the body, mind, & spirit, managing pain & symptoms, and supporting patients & families in comprehending treatment regimens, resulting in increased demand for these services.
Type Insights
On the basis of type, the market is segmented into Routine Home Care (RHC), Continuous Home Care (CHC), inpatient respite care, and general inpatient care. The RHC segment accounted for the largest revenue share of more than 92.0% in 2022. This can be attributed to factors, such as favorable reimbursement policies, increased comfort, and routine visits by registered nurses, physicians, and aides. It has the advantage of receiving companionship, family involvement, constant attention, and more. In 2020, VITAS Healthcare generated the maximum of its revenue from RHC. According to NHPCO, in 2018, 89.81% of the total Medicare spending was for RHC, an increase of 18.8% from 2014.
Other settings, such as inpatient respite care, CHC, and general inpatient homecare are anticipated to grow at a steady pace over the forecast period. Continuous home care is short-term services provided at home where symptoms cannot be managed. Furthermore, as the main aim of CHC is to manage acute symptom crises at home, it significantly reduces hospital admissions. A study published in NCBI found that hospice CHC decreases the likelihood of hospitalization and disenrollment. Thus, it provides comprehensive end-of-life care. These factors are expected to drive the segment growth.
On the other hand, inpatient homecare and inpatient respite care services are provided in healthcare facilities as the symptoms cannot be managed at home. The inpatient respite care segment is expected to grow significantly owing to supportive reimbursement policies for respite care and increasing focus on the mental health of primary care providers.
Location Insights
On the basis of location, the market is segmented into hospice centers, hospital, home hospice care, and skilled nursing facility. The hospice center segment held the maximum revenue share of more than 60.10% in 2022 owing to the benefits offered by these facilities. These centers prevent the need for hospitalization and offer more balanced and controlled care settings. Hospice centers can be helpful to patients who need round-the-clock care or do not have a caregiver. According to NHPCO, in 2018, 13.8% of the total Medicare hospice deaths occurred in hospice in-patient facilities.
The rising demand for respite care to give personal space to the primary caregiver is contributing to the segment growth. The home hospice care segment is anticipated to register significant growth during the forecast period l. The segment growth is credited to the rising preference by patients and families for home hospice care as it offers a more comfortable environment to the patient along with the freedom to visitors. In addition, it saves family members the traveling costs required to reach the patient. It is a more cost-effective option compared to long-term hospital stays.
Diagnosis Insights
The dementia segment dominated the market in 2022 with a revenue share of 27.3%. The segment is expected to grow further maintaining its dominant position during the forecasts period. Dementia is one of the leading causes of mental impairment and dependency among the elderly contributing to the growth of the segment. Individuals with end-stage dementia lose awareness, become vulnerable to infections, and have increased difficulty in communicating, which increases the need for effective treatment.Effective end-of-life care prevents and relieves suffering and supports patients in the best possible way. It also reduces the caregivers’ burden and ensures optimal treatment decisions.
The mortality rate due to Alzheimer’s disease is on the rise in the U.S., which ultimately increases the demand for palliative care. According to Alzheimer’s Association, in 2021, an estimated 6.2 million Americans aged 65 years and above will have Alzheimer’s dementia. Around 72% of those people are over the age of 75 years. The cancer segment is also expected to hold a considerable share of the global market by 2032 owing to the growing prevalence of cancer among the geriatric population. The rising preference for palliative care among the families of cancer patients is anticipated to fuel the growth of this segment. According to NHPCO, cancer is one of the largest categories for diagnoses, accounting for around 30.6% of patients. Patients with a principal diagnosis of cancer had 46.6 days of care on average, in 2018.
Key Companies & Market Share Insights
Key players are strengthening their position in the market through activities, such as partnerships, collaborations, mergers, and acquisitions. For instance, in April 2019, Geisinger Home Health and Hospice & LHC Group, Inc. entered into a joint venture to improve home health and hospice services in Pennsylvania. The partnership aims to offer hospice services in Danville, Wilkes-Barre, Bloomsburg, Lewisburg and Camp Hill, Northumberland, Lewistown, Montoursville, and Pennsylvania. Some of the prominent players in the U.S. hospice market include:
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. Hospice market.
By Type
By Location
By Diagnosis
Chapter 1. Methodology and Scope
1.1 Market Segmentation & Scope
1.1.1 Estimates And Forecast Timeline
1.2 Research Methodology
1.3 Information Procurement
1.3.1 Purchased Database:
1.3.2 Nova one advisor Internal Database
1.3.3 Secondary Sources
1.3.4 Primary Research
1.4 Information or Data Analysis
1.5 Market Formulation & Validation
1.6 Model Details
1.6.1 Commodity Flow Analysis
1.7 List of Secondary Sources
1.8 List of Abbreviations
1.9 Objectives
1.9.1 Objective - 1
1.9.2 Objective - 2
1.9.3 Objective - 3
Chapter 2. Executive Summary
2.1 Market Outlook
2.2 Segment Outlook
2.2.1 Location
2.2.2 Type
2.2.3 Diagnosis
2.3 Competitive Insights
Chapter 3. Market Variables, Trends & Scope
3.1 Market Lineage Outlook
3.1.1 Parent Market Outlook
3.1.2 Related/Ancillary Market Outlook
3.2 Market Dynamics
3.2.1 Market Driver Analysis
3.2.1.1 Rising geriatric population
3.2.1.2 Growing prevalence of chronic conditions
3.2.1.3 Increasing number of hospice centers
3.2.2 Market Restraint Analysis
3.2.2.1 Underutilization of hospice services among population
3.2.2.2 Shortage of workforce
3.2.3 Industry Challenges
3.2.3.1 Correct documentation
3.2.3.2 Misconceptions & late referrals
3.2.4 Industry Opportunities
3.2.4.1 Initiatives by hospice care centers
3.2.4.2 Adoption of new technologies
3.3 Penetration & Growth Prospect Mapping
3.4 Business Environment Analysis Tools
3.4.1 Pestel Analysis
3.4.1.1 Political & legal landscape
3.4.1.2 Economic and social landscape
3.4.1.3 Technology landscape
3.4.2 Porter’s Five Forces Analysis
3.4.2.1 Competitive rivalry : High
3.4.2.2 Threat of new entrants: Moderate
3.4.2.3 Bargaining power of buyers : High
3.4.2.4 Bargaining power of suppliers : low
3.4.2.5 Threat of substitutes: Moderate
3.5 Regulatory Framework & Reimbursement Scenario
3.6 Impact of COVID-19 : Qualitative Analysis
Chapter 4. U.S. Hospice Market : Location Analysis
4.1 U.S. Hospice Market Share Analysis, 2023 & 2032
4.2 Segment Dashboard
4.3 Market Size & Forecasts and Trend Analysis, 2020 to 2032 for the Location
4.3.1 Hospice Center
4.3.1.1 Hospice center market, 2020 - 2032
4.3.2 Hospital
4.3.2.1 Hospital market, 2020 - 2032
4.3.3 Home Hospice Care
4.3.3.1 Home hospice care market, 2020 - 2032
4.3.4 Skilled Nursing Facility
4.3.4.1 Skilled nursing facility market, 2020 - 2032
Chapter 5. U.S. Hospice Market : Type Analysis
5.1 U.S. Hospice Market Share Analysis, 2023 & 2032
5.2 Segment Dashboard
5.3 Market Size & Forecasts and Trend Analysis, 2020 to 2032 for the Type
5.3.1 Routine Home Care
5.3.1.1 Routine home care market, 2020 - 2032
5.3.2 Continuous Home Care
5.3.2.1 Continuous home care market, 2020 - 2032
5.3.3 Inpatient Respite Care
5.3.3.1 Inpatient respite care market, 2020 - 2032
5.3.4 General Inpatient Care
5.3.4.1 General inpatient care market, 2020 - 2032
Chapter 6. U.S. Hospice Market : Diagnosis Analysis
6.1 U.S. Hospice Market Share Analysis, 2023 & 2032
6.2 Segment Dashboard
6.3 Market Size & Forecasts and Trend Analysis, 2020 to 2032 for the Diagnosis
6.3.1 Dementia
6.3.1.1 Dementia market, 2020 - 2032
6.3.2 Circulatory/Heart
6.3.2.1 Circulatory/ heart market, 2020 - 2032
6.3.3 Cancer
6.3.3.1 Cancer market, 2020 - 2032
6.3.4 Respiratory
6.3.4.1 Respiratory market, 2020 - 2032
6.3.5 Stroke
6.3.5.1 Stroke market, 2020 - 2032
6.3.6 Chronic Kidney Disease
6.3.6.1 Chronic kidney disease market, 2020 - 2032
6.3.7 Others
6.3.7.1 Others market, 2020 - 2032
Chapter 7. Competitive Analysis
7.1 Recent Developments & Impact Analysis, by Key Market Participants
7.2 Competition Categorization (Key innovators, market leaders, emerging players)
7.3 Company Market Position Analysis
7.4 Company Profiles
7.4.1 Kindred Healthcare Inc. (Knight Health Holdings, Inc.)
7.4.1.1 Company overview
7.4.1.2 Financial performance
7.4.1.3 Service benchmarking
7.4.1.4 Strategic initiatives
7.4.2 Amedisys
7.4.2.1 Company overview
7.4.2.2 Financial performance
7.4.2.3 Service benchmarking
7.4.2.4 Strategic initiatives
7.4.2.5 SWOT analysis
7.4.3 LHC GROUP, INC.
7.4.3.1 Company overview
7.4.3.2 Financial performance
7.4.3.3 Service benchmarking
7.4.3.4 Strategic initiatives
7.4.3.5 SWOT analysis
7.4.4 BROOKDALE SENIOR LIVING, INC.
7.4.4.1 Company overview
7.4.4.2 Financial performance
7.4.4.3 Service benchmarking
7.4.4.4 Strategic initiatives
7.4.4.5 SOWT analysis
7.4.5 Chemed Corporation
7.4.5.1 Company overview
7.4.5.2 Financial performance
7.4.5.3 Service benchmarking
7.4.5.4 Strategic initiatives
7.4.5.5 SOWT analysis
7.4.6 Crossroads Hospice
7.4.6.1 Company overview
7.4.6.2 Financial performance
7.4.6.3 Service benchmarking
7.4.7 Seasons Hospice & Palliative Care
7.4.7.1 Company overview
7.4.7.2 Financial performance
7.4.7.3 Service benchmarking
7.4.8 Accentcare, Inc.
7.4.8.1 Company overview
7.4.8.2 Financial performance
7.4.8.3 Service benchmarking
7.4.8.4 Strategic initiatives
7.4.9 Heart To Heart Hospice
7.4.9.1 Company overview
7.4.9.2 Financial performance
7.4.9.3 Service benchmarking
7.4.9.4 Strategic initiatives
7.4.10 Oklahoma Palliative & Hospice Care
7.4.10.1 Company overview
7.4.10.2 Service benchmarking
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers