Healthcare Market Drivers-We are seeing a perfect storm in the making in healthcare with trends that have combined to form tailwinds that are now poised to drive massive expansion in the home healthcare market.
Even in the fast-growing healthcare sector, the home health industry stands out for its explosive growth. Home health spending is expected increase at a faster rate through 2027 than all other categories of care, according to a recent analysis from the Centers for Medicare & Medicaid Services (CMS) Office of the Actuary.
At an annual growth rate of 7 percent, home health spending is expected to reach more than $186 billion in 2027, according to the report. That rate of expansion far outpaces other categories of care, such as hospital care, physician and professional services, nursing facilities, prescription drugs, retail sales of medical products and others.
Major drivers fueling the surge:
Aging Baby Boomers
By 2035, and for the first time in U.S. history, people over the age of 65 will outnumber those under 18, according to projections from the U.S. Census Bureau. By 2030, all Baby Boomers will be older than 65, and 20 percent of the population will be retirement age.
Needless to say, America is graying rapidly. But that aging population provides healthcare organizations (HCOs) with new opportunities to serve them as an expanding market – particularly through home care solutions. About 70 percent of people who seek home care are over the age of 65, meaning that the already fast-growing home care industry will see even greater demand as the population ages.
Advances in in-home technology
Future advances in home health technology have the potential not only to facilitate the role of home care within the overall healthcare system, but also to help foster community-based independence for individuals, according to an article from the National Academies Press. Indeed, greater independence is among the most valuable gifts that in-home healthcare technology can deliver to patients.
There’s been no shortage of innovation in the home care industry that help seniors to age-in-place by avoiding unnecessary emergency room visits or costly nursing home stays, for example. Perhaps the most familiar scenario is remote patient monitoring (RPM), in which in-home devices transmit key patient information such as vital signs to their providers. RPM can happen via a number of means – cameras, GPS services, patches, implants, even smartphone apps that use the device’s sensors.