The U.S. long term care market size was estimated at USD 491.90 billion in 2022 and is expected to surpass around USD 885.92 billion by 2032 and poised to grow at a compound annual growth rate (CAGR) of 6.06% during the forecast period 2023 to 2032.
Key Takeaways:
U.S. Long Term Care Market Report Scope
Report Coverage | Details |
Market Size in 2023 | USD 521.71 Billion |
Market Size by 2032 | USD 885.92 Billion |
Growth Rate From 2023 to 2032 | CAGR of 6.06% |
Base Year | 2022 |
Forecast Period | 2023 to 2032 |
Segments Covered | Service |
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 | Brookdale Senior Living, Inc; Sunrise Senior Living, LLC; Kindred Healthcare; Amedisys, Inc; Genesis Healthcare, Inc; Capital Senior Living Corporation; Diversicare Healthcare Services, Inc; Home Instead, Inc; Senior Care Center; Atria Senior Living. |
Demand for long-term care (LTC) has increased owing to the recognition of unmet needs of the elderly which are not fulfilled by hospital settings. According to estimates of the U.S. Department of Health and Human Services (HHS), around 71% of the U.S. population is expected to use long-term care services in their lives for an average of about three years, thus impelling their demand in the forthcoming times.
High geriatric population in the U.S. is rapidly rising due to increased life expectancy. In 2020, around 73 million adults in the U.S. were aged 65 and above, accounting for 16.5% of the country’s population as per the U.S. Census Bureau. The geriatric population in the U.S. has a high prevalence of chronic diseases driving the market. For instance, as per the Alzheimer’s Association, 6 million people in the U.S. aged 65 & above have dementia.
Technological developments in the long-term care industry are one of the major factors responsible for the expansion of these services across the U.S. Earlier, durable medical devices such as wheelchairs, walkers, and safety rugs were mostly used for care management. The development of sophisticated & easy-to-use devices and services such as internet-enabled home monitors, telemedicine, and apps for mobile health is likely to boost the market in the forecast period.
The adoption of telehealth applications by providers of long-term care services is helping the market transform into an organized sector, attracting the interest of investors and entrepreneurs. Important advantages of technology integrated service are the reduction in financial burden associated with medical procedures and a decrease in the requirement of institutional care. For instance, remote patient monitoring in-home care services enable doctors to review real-time data and consult patients, reducing the number of home visits & appointments and helping in reducing emergency hospital admissions
According to the American Association of Long-Term Care Insurance, more than 8 million U.S. citizens have long-term care insurance. Employers are taking initiative to provide long-term care services to their employees. For instance, Medtronic sponsors a group LTC insurance plan for its employees. This plan is aimed at protecting employees from high costs associated with long-term care services at home, in community care, and in assisted living facilities.
The federal and state governments in the U.S. are undertaking initiatives to enhance the reach & quality of care services in the U.S. 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. For Instance, The CMS updated reimbursement for remote patient in 2021, facilitating better reimbursement for technology use
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.
Service Insights
Based on service, the market is categorized into skilled nursing facilities, home healthcare care, assisted living facility, hospice & palliative care, and others. In 2022, skilled nursing facility accounted for the largest share of 37.49% due to the increasing demand for nursing care services because of the high prevalence of chronic diseases among the U.S. population.
Home healthcare held a significant share of the U.S. LTC market in 2022. Factors such as an increase in average life expectancy, a rise in incidences of chronic but manageable diseases, an increase in the geriatric population, and sufficient economic resources are contributing to the growth of the market for home healthcare. Adoption of home healthcare is high among people older than 65 years of age, individuals recently discharged from hospitals, mothers of newborns, mentally challenged adults, and individuals who want medical assistance for their parents within their homes.
The hospice & palliative care segment is expected to witness the highest growth with a CAGR of 9.04% over the forecast period. Disorders such as Alzheimer’s disease are major reasons for preference for assisted living facilities, which is followed by depression. Adults suffering from mental illness require assisted living to sustain themselves in mainstream society. In the U.S., mental illness is the most expensive disorder, costing about USD 201 billion annually. This is expected to translate into exponential growth in the assisted living industry in the times to come.
Key Companies & Market Share Insights
The U.S. long-term care market is highly competitive with the presence of serval small & big players at regional and national levels. 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 July 2021, Brookdale Senior Living, Inc. sold a significant stake in its outpatient therapy, hospice, and home health business to HCA Healthcare. Some of the prominent players in the U.S. long term care 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. Long Term Care market.
By Service
Chapter 1 Methodology and Scope
1.1 Market Segmentation & Scope
1.1.1 Estimates and Forecast Timeline
1.2 Research Objectives
1.2.1 Objective - 1
1.2.2 Objective - 2
1.2.3 Objective - 3
Chapter 2 Research Methodology
2.1 Information Procurement
2.1.1 Purchased Database:
2.1.2 Nova one advisor Internal Database
2.1.3 Secondary Sources
2.1.4 Primary Research
2.2 Information or Data Analysis
2.3 Market Formulation & Validation
2.4 Model Details
2.4.1 Commodity Flow Analysis
2.5 List of Secondary Sources
2.6 List of Abbreviations
Chapter 3 Executive Summary
3.1 Market Outlook
3.2 Segment Outlook
3.2.1 Service
3.3 Competitive Insights
Chapter 4 Market Variables, Trends & Scope
4.1 Market Lineage Outlook
4.1.1 Parent Market Outlook
4.1.2 Related/Ancillary Market Outlook
4.2 Market Dynamics
4.2.1 Market Driver Analysis
4.2.1.1 Growing geriatric population
4.2.1.2 Increasing prevalence of target diseases, especially Alzheimer’s and other dementias
4.2.1.3 Increasing employment of women
4.2.1.4 Technological development
4.2.1.5 Increasing government involvement in therapeutic and vaccination in LTC facilities
4.2.2 Market Restraint Analysis
4.2.2.1 Lack of skilled human resources
4.2.2.2 Stringent regulations
4.2.2.3 Lower remunerations
4.2.3 Industry Challenges
4.2.3.1 Paying for long-term care
4.2.4 Industry Opportunities
4.2.4.1 Increasing burden on hospitals
4.3 Penetration & Growth Prospect Mapping
4.4 Business Environment Analysis Tools
4.4.1 PESTEL Analysis
4.4.1.1 Political & legal landscape
4.4.1.2 Economic and social landscape
4.4.1.3 Technology landscape
4.4.2 Porter’s Five Forces Analysis
4.4.2.1 Competitive rivalry: High
4.4.2.2 Threat of new entrants: Moderate
4.4.2.3 Bargaining power of buyers: Moderate
4.4.2.4 Bargaining power of suppliers: Low
4.4.2.5 Threat of substitutes: Moderate
4.5 Impact of COVID-19 on the U.S. Long-term Care Market
Chapter 5 U.S. Long-term Care (LTC) Market: Service Analysis
5.1 U.S. Long-term Care (LTC) Market Share Analysis, 2023 & 2032
5.2 Segment Dashboard
5.3 Skilled Nursing Facility
5.3.1 Reimbursement Scenario
5.3.2 Skilled Nursing Facility market, 2020 - 2032
5.4 Home Healthcare
5.4.1 Reimbursement scenario
5.4.2 Home healthcare market, 2020 - 2032
5.5 Assisted Living Facilities
5.5.1 Reimbursement scenario
5.5.2 Assisted living facilities market, 2020 - 2032
5.6 Hospice & Palliative Care
5.6.1 Reimbursement Scenario
5.6.2 Hospice & palliative care market, 2020 - 2032
5.7 Others
5.7.1 Other long term care services market, 2020 - 2032
Chapter 6 Competitive Analysis
6.1 Recent Developments & Impact Analysis, by Key Market Participants
6.2 Competition Categorization (Key innovators, market leaders, emerging players)
6.3 Major Deals & Strategic Alliances Analysis
6.3.1 Joint Ventures & Partnerships
6.3.2 Mergers & Acquisitions
6.4 Company Market Position Analysis
6.5 Company Profiles
6.5.1 Brookdale Senior Living Inc.
6.5.1.1 Company overview
6.5.1.2 Financial performance
6.5.1.3 Service benchmarking
6.5.1.4 Strategic initiatives
6.5.1.5 SWOT analysis
6.5.2 Sunrise Senior Living, LLC
6.5.2.1 Company overview
6.5.2.2 Financial performance
6.5.2.3 Service benchmarking
6.5.2.4 Strategic initiatives
6.5.2.5 SWOT analysis
6.5.3 Kindred Healthcare, LLC
6.5.3.1 Company overview
6.5.3.2 Financial performance
6.5.3.3 Service benchmarking
6.5.3.4 Strategic initiatives
6.5.3.5 SWOT analysis
6.5.4 Amedisys, Inc.
6.5.4.1 Company overview
6.5.4.2 Financial performance
6.5.4.3 Product benchmarking
6.5.4.4 Strategic initiatives
6.5.4.5 SWOT analysis
6.5.5 Genesis HealthCare
6.5.5.1 Company overview
6.5.5.2 Financial performance
6.5.5.3 Service benchmarking
6.5.5.4 Strategic initiatives
6.5.5.5 SWOT analysis
6.5.6 Capital Senior Living Corporation
6.5.6.1 Company overview
6.5.6.2 Financial performance
6.5.6.3 Service benchmarking
6.5.6.4 Strategic initiatives
6.5.6.5 SWOT analysis
6.5.7 Diversicare Healthcare Services, Inc.
6.5.7.1 Company overview
6.5.7.2 Financial performance
6.5.7.3 Service benchmarking
6.5.7.4 Strategic initiatives
6.5.7.5 SWOT analysis
6.5.8 Home Instead, Inc.
6.5.8.1 Company overview
6.5.8.2 Financial performance
6.5.8.3 Service benchmarking
6.5.8.4 Strategic initiatives
6.5.9 Senior Care Center
6.5.9.1 Company overview
6.5.9.2 Financial performance
6.5.9.3 Service benchmarking
6.5.9.4 Strategic initiatives
6.5.10 Atria Senior Living, Inc.
6.5.10.1 Company overview
6.5.10.2 Financial performance
6.5.10.3 Service benchmarking
6.5.10.4 Strategic initiatives