Home healthcare represents a cost-effective alternative to facility-based care. It also benefits from decreased hospital and post-acute care facility stays fuelled by the growth of at-risk contracts. However, near-term reimbursement pressures are expected to abate, resulting in the normalization of operating margins. A possible increase in the minimum wages as mandated by municipal and/or state governments requires monitoring. Favourable demographics will result in sustainable growth for agencies that are efficient, effective and able to generate referrals.

The volume of production in wheelchairs, electric wheelchairs, mobility scooters, bathing equipment and excretory equipment are decreasing though not as much as care beds. Whereas, an upsurge in the number of people procuring products with their own money other than with the insurance assistance is also seen. Also there are some disabled people who prefer buying home care and rehabilitation equipment’s with high capabilities to get a better job while there are also some advanced elderly care homes which recommend in-patient to purchase wheelchairs which fit to the self-reliant life. A paradigm shift to improve the quality of life and job by introducing the equipments with high quality is observed. If this trend continues, it is likely to expand the market of private purchase little by little.

With the objective to provide lower costs and higher quality in home healthcare, regulators, providers, and payers are steering new value and outcome based payment and care delivery models. Some of the models from the U.S include,

• Accountable Care Organizations (ACOs) and other methods of shared savings programs: The total number of public (Medicare) and private ACOs is projected at more than 600 nationally, casing more than 18 million insured people.
• Payment bundling: Under this provision, providers obtain a single payment for an episode of care and will share savings from well-organized ways of delivering services.
• Patient-centered medical homes and health homes: These models offer incentive to the providers for better care of chronic conditions and better patient experiences.

The global home healthcare market is segmented into devices and services. Services had majority market share in 2018 with 52.6%and is expected to dominate the market till 2025. In the services segment rehabilitation accounted for the major market share, while in devices therapeutic devices occupied the major market share in 2018.

Health systems are draining to manage the load of musculoskeletal and neurological diseases worldwide, with rehabilitation as the most common therapy for managing these disorders. Technological revolution in healthcare rehabilitation, is proving to be the key to transform the lives of thousands of people affected by neurological and musculoskeletal disorders, along with stroke survivors, by assisting them regularize basic actions and become independent. By tapping this opportunity and meeting market needs, digital health is finding applications in this area. Since 2010, NEOFECT has provided classic innovation in using digital health to grow the effectiveness and stability of rehabilitation. NEOFECT’s newest launch, RAPAEL Smart Pegboard, a digital pegboard exclusively for stroke rehabilitation and is an entertaining and interactive tool with around 30 games that keep patients involved and enthused to continue their therapy. Thus, healthcare gamification is proving to be a promising tool to encourage patients to achieve rehabilitation sittings with some token of appreciation and accomplishment in the end. In addition, the various types of available games diminish the challenge of monotony in rehabilitation.

In countries like China, with short development history the rehabilitation medicine is poorly recognized. The number of people actually receiving rehabilitation is far lower than people who should receive rehabilitation. In China, among the 138 million old people, 70 million are in need of rehabilitation. The scenario not only indicates that patients attach no importance to rehabilitation therapy, but implies that there exists a potentially huge rehabilitation market.

North America dominated the global home healthcare market in 2018 and was followed by Europe. However, Asia Pacific is expected to emerge with the highest CAGR of 9.8% during the forecast period.

For health care providers, the requirements in terms of services for the geriatric population remains a challenge. In the coming years, the U.S. is likely to experience a spur in its elderly population. By 2050, it is anticipated that the total number of Americans in the age bracket of 65 and above will cross 88 million, primarily owing to baby boomers, as they will enter elderly age group.

The rapidly growing elderly population over 65 age, predominantly the 75-84 age group is anticipated to support the growth of home healthcare market. U.S. healthcare costs increased by 3.9% to touch USD 3.5 trillion in the year 2017, which comes out to be approximately USD 10,739.0/person. In the year 2017, the health care spending progression was same as to average growth from 2008 - 2013, which anticipated the rapid growth during 2014-15 which was marked by expansion in insurance coverage & high growth rates in spending for retail prescription drug. With the growing expenditure for availing healthcare facilities, the home healthcare market is expected to boost in the forecast period.

Chronic diseases are also on the rise across the United States, one of the most prevalent and expensive conditions of health. Approximately 45% of Americans currently suffer from at least one chronic disease and this number continues to grow. Some of the chronic diseases, such as heart disease, stroke, respiratory disease, cancer, diabetes, may result in long-term hospital admission for the among the US population majorly for adults and old age people. These types of hospitalization are very expensive and in the United States alone, according to the Center for Disease Control, chronic diseases account for about 75 percent of total healthcare expenditure. Accordingly, U.S. demand for home health care. Thus, the demand for home healthcare in the U.S. primarily in for geriatric population would grow over in future.