US Post-Acute Care Market Size by Type (Skilled Nursing Facilities, Home Health, Inpatient Rehabilitation Facilities, Long Term Acute Care Hospitals); by Application (Child, Adult, and Elderly) by Region and Forecast 2013 to 2025
May 2019
Total Pages: 105
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In 2018, the U.S. post-acute care market was valued at USD 358.11 billion and is expected to grow at a CAGR of 4.3% over the forecast period. Increasing grey population within the country is expected to drive the demand for geriatric care services in coming years.
-Market-Size-Comparison-by-Types.png "United States Post-Acute Care (PAC) Market Size Comparison by Types, 2013-2025 (USD Billion)")
The healthcare requirement for the growing older American population continue to be a challenge for the healthcare providers. United States is expected to experience a rapid rise in its old aged population in the coming future. By 2050, the total number of American in the age bracket of 65 and above is expected to reach 88.5 million which is mostly due to baby boomers, as they would begin to enter into old age category. The rapid growth of the old aged population over 65 age and most importantly the 75-84 year old cohort is expected to fuel the growth of the post-acute care market.
Chronic diseases are on the rise across the United States which is among the most prevalent and costly health conditions. Approximately 45% of the Americans are currently suffering from at least one chronic disease and this number is still growing. Some of the chronic diseases such as heart diseases, stroke, respiratory diseases, cancer, and diabetes, Alzheimer’s among others can lead to long term hospitalization among the older population. These types of hospitalization are very costly and as per the Centers for Disease Control, in the United States alone, chronic diseases account for approximately 75% of aggregate healthcare spending. Some of the statistics below justify that the demand for the post-acute care among the US population and especially the old age population would continue to grow over the forecast period.
Key Segments of the U.S. Post Acute Care Market
Type Overview, 2013-2025 (USD Billion)
- Skilled nursing facilities
- Home health
- Long term acute care hospitals
- Inpatient rehabilitation facilities
Application Overview, 2013-2025 (USD Billion)
- Child
- Adult
- Elderly
Regional Overview, 2013-2025 (USD Billion)
- West
- Southwest
- Middle Atlantic
- New England
- South U.S.
- Midwest
Reasons for the study
- Silver Tsunami is expected to affect various healthcare services. The large proportion of geriatric population in the US offers growth opportunities for various home care and skilled nursing services. We wanted to study the affect of such stimulus on the Post-Acute Care services in the U.S.
- We wanted to understand which segments were, are and going to be the major consumers of such services and if there is a pattern.
- The market is fragmented with regional dominance of domestic players. The companies are concentrating on studies to enhance technological advancements to meet the demand.
What does the report include?
- The report focuses on post-acute market on the basis of treatment type.
- The study on the U.S post-acute market includes qualitative factors such as patient profiles, drivers, restraints and opportunities.
- The study covers qualitative and quantitative analysis of the market segmented on the basis of type, application and region. Moreover, the study provides similar information for the key geographies
- Actual market sizes and forecasts have been provided for all the above-mentioned segments
- The study includes the profiles of key players in the market
Who should buy this report?
- The report on the U.S post-acute market is suitable for all the players across the value chain including healthcare companies and technology manufacturers
- Venture capitalists and investors looking for more information on the future outlook of the U.S post-acute market
- Consultants, analysts, researcher, and academicians looking for insights shaping the U.S post-acute market
In 2016, Mergers & Acquisitions played an important role in consolidation of the market. ResMed’s acquired Brightree for USD 800 million and was considered as Mid-Market Deal of the Year. Not only this was the 2nd largest healthcare SaaS acquisition, but the acquisition also showed how post-acute care software are becoming area of interest for software providers, strategic acquirers and private equity firms. Since 2016, post-acute care services market has been observing various mergers & acquisitions and a surge in private capital investments.
Shift of majority of population towards care outside hospital and clinics is expected to reduce the costs in coming years and will be a vital element of healthcare spending in the U.S. PAC providers, on the other hand, have underinvested in technology (software) aspects In the past, but now the landscape has been changing in past few years. Increased investments regarding adoption of latest software has been seen in order to cater high patient volumes. As a result, technology providers that offer tools to aid PAC providers for improvement in coordination of care is expected to gain traction in coming years.
New value-based payment and care models is expected to create opportunities for post-acute care industry in United States. Moreover, health care industry’s pursuit for high quality at lower cost; regulators, providers, and payers are steering outcomes based payment and care delivery models. For instance, customer-oriented medical homes and health homes; this model offers better care for chronic conditions. In addition, payment bundling model offers single payment for an episode of care and it ultimately share savings from more ways of delivering services.
In 2018, skilled nursing facilities accounted for over 50% of overall market share and is expected to maintain its dominance by 2025. On the other hand, home health segment is expected to emerge as most lucrative segment. Home care represents a cost-effective alternative to facility-based care. The IMPACT Act is anticipated to better match patient acuity with service needs, likely resulting in augmented downstream flow of patients from SNF. Near-term reimbursement pressures are expected to abate, resulting in the normalization of operating margins. A possible increase in the minimum wage as mandated by municipal and / or state governments requires monitoring. Shift in demographic profile of the country will result in potential growth for agencies.
Long-term acute care hospitals (LTACHs) grew rapidly between 2000 and 2010 and then stagnated due to a flattening of reimbursement growth and a construction moratorium imposed by The Centers for Medicare & Medicaid Service (CMS). Long-term acute care services are for patients who require specialized treatment and ongoing care for critical illness. More than 400 long term acute care hospitals were opened in the U.S. from 1985 to 2010. Some of the prominent hospitals offering long-term acute care are Promise Hospital, Kindred Hospital, National Rehabilitation Hospital, and Whittier Hospital.
Adult segment accounted for over 40% in 2018 and is expected to grow at a CAGR of 4.5% over the study period. Adults often are dependent on post-acute care facilities after hospital discharge to speed up the recovery cycle and maintain good health.
Heart diseases are most common medical conditions prevalent in the U.S. in the U.S., approximately 600,000 people die of cardiac arrest or procedure annually. Variety of care services are available in the U.S. depending on the condition of the patient. HHC is suggested for patients with minimal functional impairment. On the other hand, elderly population with physical limitations are offered skilled nursing facilities. The fastest growing fragment of the population are 85 and above and this class of population is most susceptible to chronic diseases. With such surge in 85 and above population, prevalence of Alzheimer’s is expected to reach new highs in coming years.
The west U.S. states include Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Wyoming. Increasing geriatric population coupled with presence of highly populous states such as California, is expected to act as support for growing point of care serves market in the region. Additionally, high concentration of geriatric population in states such as California, New Mexico, and Arizona is anticipated to be potential markets for post-acute care in coming years. States such as New Mexico has around 41 hospitals and a population of 2.09 million as of 2018.
New England incudes of 6 states namely Vermont, Rhode Island, Connecticut, Maine, New Hampshire, and Massachusetts. According to the estimates by UMass Donahue Institute, the population in Massachusetts will increase by 11.8% from 2010-2035. Also, according to the U.S. Census Bureau, 65 and above population is expected to increase from 16% in 2015 to 22% by 2025. Additionally, increasing life expectancy is expected to attract large number of geriatric population opting for post-acute care as elderly population are most prone to chronic diseases which require long term care.
In 2018, the U.S. post-acute care market was valued at USD 358.11 billion and is expected to grow at a CAGR of 4.3% over the forecast period. Increasing grey population within the country is expected to drive the demand for geriatric care services in coming years.
The healthcare requirement for the growing older American population continue to be a challenge for the healthcare providers. United States is expected to experience a rapid rise in its old aged population in the coming future. By 2050, the total number of American in the age bracket of 65 and above is expected to reach 88.5 million which is mostly due to baby boomers, as they would begin to enter into old age category. The rapid growth of the old aged population over 65 age and most importantly the 75-84 year old cohort is expected to fuel the growth of the post-acute care market.
Chronic diseases are on the rise across the United States which is among the most prevalent and costly health conditions. Approximately 45% of the Americans are currently suffering from at least one chronic disease and this number is still growing. Some of the chronic diseases such as heart diseases, stroke, respiratory diseases, cancer, and diabetes, Alzheimer’s among others can lead to long term hospitalization among the older population. These types of hospitalization are very costly and as per the Centers for Disease Control, in the United States alone, chronic diseases account for approximately 75% of aggregate healthcare spending. Some of the statistics below justify that the demand for the post-acute care among the US population and especially the old age population would continue to grow over the forecast period.
Key Segments of the U.S. Post Acute Care Market
Type Overview, 2013-2025 (USD Billion)
- Skilled nursing facilities
- Home health
- Long term acute care hospitals
- Inpatient rehabilitation facilities
Application Overview, 2013-2025 (USD Billion)
- Child
- Adult
- Elderly
Regional Overview, 2013-2025 (USD Billion)
- West
- Southwest
- Middle Atlantic
- New England
- South U.S.
- Midwest
Reasons for the study
- Silver Tsunami is expected to affect various healthcare services. The large proportion of geriatric population in the US offers growth opportunities for various home care and skilled nursing services. We wanted to study the affect of such stimulus on the Post-Acute Care services in the U.S.
- We wanted to understand which segments were, are and going to be the major consumers of such services and if there is a pattern.
- The market is fragmented with regional dominance of domestic players. The companies are concentrating on studies to enhance technological advancements to meet the demand.
What does the report include?
- The report focuses on post-acute market on the basis of treatment type.
- The study on the U.S post-acute market includes qualitative factors such as patient profiles, drivers, restraints and opportunities.
- The study covers qualitative and quantitative analysis of the market segmented on the basis of type, application and region. Moreover, the study provides similar information for the key geographies
- Actual market sizes and forecasts have been provided for all the above-mentioned segments
- The study includes the profiles of key players in the market
Who should buy this report?
- The report on the U.S post-acute market is suitable for all the players across the value chain including healthcare companies and technology manufacturers
- Venture capitalists and investors looking for more information on the future outlook of the U.S post-acute market
- Consultants, analysts, researcher, and academicians looking for insights shaping the U.S post-acute market
Chapter 1 Post-Acute Care (PAC) Overview
1.1 United States Post-Acute Care (PAC) Market Size Comparison by Types (2013-2025)
1.1.1 United States Post-Acute Care (PAC) Market Share by Types (Product Category) in 2018
1.1.2 SNFs
1.1.3 Home Health
1.1.4 IRFs
1.1.5 LTACs
1.2 United States Post-Acute Care (PAC) Market by Applications
1.2.1 United States Post-Acute Care (PAC) Market Size Comparison by Applications (2013-2025)
1.2.2 Child
1.2.3 Adult
1.2.4 Elderly
1.3 United States Post-Acute Care (PAC) Market by Regions
1.3.1 United States Post-Acute Care (PAC) Market Size (Billion USD) Comparison by Regions (2013-2025)
1.3.2 The West Post-Acute Care (PAC) Status and Prospect (2013-2025)
1.3.3 Southwest Post-Acute Care (PAC) Status and Prospect (2013-2025)
1.3.4 The Middle Atlantic Post-Acute Care (PAC) Status and Prospect (2013-2025)
1.3.5 New England Post-Acute Care (PAC) Status and Prospect (2013-2025)
1.3.6 The South of US Post-Acute Care (PAC) Status and Prospect (2013-2025)
1.3.7 The Midwest Post-Acute Care (PAC) Status and Prospect (2013-2025)
1.3.8 United States Post-Acute Care (PAC) Revenue and Growth Rate (2013-2025)
1.4 Macroscopic Indicator
1.4.1 GDP for Major Regions
1.4.2 Population Considered for Forecast
1.4.3 Disposable Income Considered for Forecast
Chapter 2 United States Post-Acute Care (PAC) Market Competition By Manufacturers
2.1 United States Post-Acute Care (PAC) Market Share of Key Players/Manufacturers (2013-2018)
2.2 United States Post-Acute Care (PAC) Market Competitive Situation and Trends
2.2.1 Mergers & Acquisitions, Expansion in United States Market
2.2.2 Operating costs of hospitals
2.2.2.1 Construction cost
2.2.2.2 Potential Total Costs for a 16-Bed Facility
2.2.2.3 Potential Personnel Costs
Chapter 3 United States Post-Acute Care (PAC) Revenue by Regions (2013-2018)
3.1 United States Post-Acute Care (PAC) Revenue and Market Share by Regions (2013-2018)
Chapter 4 United States Post-Acute Care (PAC) Revenue by Type/ Product Category (2013-2018)
4.1 United States Post-Acute Care (PAC) Revenue and Market Share by Type (2013-2018)
Chapter 5 United States Post-Acute Care (PAC) Revenue by Application (2013-2018)
5.1 United States Post-Acute Care (PAC) Revenue and Market Share by Application (2013-2018)
5.2 Market Drivers
5.2.1 Aging Population
5.2.2 Growing Healthcare Expenditure
5.2.2.1 Health spending by type of service or product
5.2.3 Rising chronic diseases
5.2.3.1 Projections of Total Numbers of Americans Age 65 and Older with Alzheimer’s Dementia by State
5.3 Opportunities
5.3.1 Home healthcare services
Chapter 6 United States Post-Acute Care (PAC) Players/Manufacturers Profiles
6.1 Kindred Healthcare
6.1.1 Company overview
6.1.2 Product offerings
6.1.3 Financial performance
6.1.4 Recent developments
6.2 Amedisys Inc.
6.2.1 Company overview
6.2.2 Product offerings
6.2.3 Financial performance
6.2.4 Recent developments
6.3 LHC Group
6.3.1 Company overview
6.3.2 Product offerings
6.3.3 Financial performance
6.3.4 Recent developments
6.4 Genesis Healthcare
6.4.1 Company overview
6.4.2 Product offerings
6.4.3 Financial performance
6.4.4 Recent developments
6.5 AMITA Health
6.5.1 Company overview
6.5.2 Product offerings
Chapter 7 Marketing Strategy Analysis, Distributors/Traders
7.1 Marketing Channel
7.1.1 Marketing Channel Development Trend
Chapter 8 United States Post-Acute Care (PAC) Market Size Forecast (2018-2025)
8.1 United States Post-Acute Care (PAC) Revenue Forecast (2018-2025)
8.2 United States Post-Acute Care (PAC) Revenue Forecast by Type (2018-2025)
8.3 United States Post-Acute Care (PAC) Revenue Forecast by Application (2018-2025)
8.4 United States Post-Acute Care (PAC) Revenue Forecast by Region (2018-2025)
Chapter 9 Research Findings and Conclusion
Chapter 10 Methodology and Data Source
10.1 Research Methodology
10.2 Market Size Estimation Methodology
10.3 Forecasting Methodology
10.4 Scope, definition, and assumptions
10.5 Assumptions
10.6 Data sources