Global home healthcare market size was valued at 301.09 billion in 2021, and it is expected to reach a value of $813.17 billion by 2028, at a CAGR of 15.25% over the forecast period (2022–2028). According to the National Association for Home Care and Hospice, about 12 million Americans receive some form of home healthcare each year. And that number is only expected to grow in the coming years. Home healthcare market comprises many different forms, from physical therapy to skilled nursing care, and can be a great option for those who want to age in place.
Westford, USA, July 05, 2022 (GLOBE NEWSWIRE) -- According to the World Health Organization (WHO), chronic diseases, such as cancer, cardiovascular diseases, chronic respiratory diseases, and diabetes, are responsible for approximately 60% of all deaths globally. These diseases are often associated with unhealthy lifestyles, such as poor diet, lack of physical activity, and tobacco use. The WHO estimates that more than 80% of premature deaths due to chronic diseases could be avoided through lifestyle changes and early detection and treatment. As the population continues to age, the prevalence of chronic diseases is expected to increase. This increase is expected to drive the growth of the home healthcare market over the forecast period.
As the population continues to age, there is an increasing demand for home healthcare services as they can provide many benefits for seniors, including allowing them to age in place and remain independent. There are a number of factors driving the growth of home healthcare market, including the rising cost of nursing home care and the increasing prevalence of chronic conditions such as heart disease and diabetes. In addition, advances in technology have made it possible for more people to receive care at home.
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Start-Ups are Trying to Seize the $813 Billion Opportunity in Home Healthcare Market
According to the National Association for Home Care & Hospice (NAHC), the number of people needing home healthcare will grow by at least 64 million by 2025. This growth is being driven by several factors, including an aging population, advances in medical technology, and changing attitudes about receiving care at home. The NAHC estimates that there are currently 18 million people receiving home healthcare services in the United States. Of these, 4 million are over the age of 85 and 9 million are between the ages of 65 and 85. By 2050, it is estimated that there will be 9 million people over the age of 85 and 17 million people between the ages of 65 and 84 needing services in the global home healthcare market.
The aging Baby Boomer generation is one of the largest driving forces behind the growth in demand for home healthcare services. As this generation begins to reach retirement age, they will increasingly need assistance with Activities of Daily Living (ADLs) such as bathing, dressing, eating, and using the restroom. In addition, many older adults will require help managing chronic conditions such as diabetes, heart disease, arthritis, and Alzheimer’s disease.
There is no doubt that the home healthcare market is rapidly expanding and there are plenty of opportunities for start-ups to take advantage of this growth. The key to success in this industry is to identify a niche market and offer a unique solution that meets the needs of this target audience. One of the most promising areas for start-ups in the home healthcare market is providing services to seniors. This population is growing at an unprecedented rate and will continue to do so as baby boomers age. There is a great need for quality services that can help seniors stay healthy and independent in their own homes.
Another promising area for start-ups in the home healthcare market is providing care for people with chronic illnesses. This includes diseases such as diabetes, heart disease, and respiratory conditions. These illnesses often require ongoing care and management, which can be provided by home healthcare companies. Finally, another area where start-ups can find success in the home healthcare industry is providing services to disabled individuals. This population has unique needs that must be met in order to live independently. The companies that focus on helping disabled individuals live independently can be very successful.
Some of the leading start-ups in home healthcare market includes:
CareLinx: This start-up provides an online marketplace that connects families and individuals with caregivers. Families can search for caregivers based on skills, location, and availability, and then book and pay for services online.
• HomeHero: Another caregiver marketplace, HomeHero majorly generates market revenue by offering a concierge service to help families find the perfect match for their needs. In addition to connecting families with caregivers, they also provide support and resources for both parties.
• Honor: Honor is a home care provider that uses technology to connect families with the best possible caregivers. They offer a mobile app that makes it easy to schedule and manage care, as well as providing transparency around pricing. This helped to the company to gain a significant market share.
• Hometeam: Hometeam offers in-home health assistance and nursing care for seniors through a network of licensed professionals. They provide customizable care plans and 24/7 support so that families can have peace of mind knowing their loved ones are being taken care of.
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Home Healthcare is Becoming Popular with Growing Penetration of Technology-Enabled Devices
Home healthcare market is gaining all the popularity due to the growing penetration of technology-enabled devices. These devices allow patients to receive care in the comfort of their own homes, and provide them with a greater degree of independence and control over their own health. There are a number of different types of technology-enabled devices that home healthcare providers can use to deliver care, including:
Telehealth systems: Telehealth systems allow patients to connect with their care providers remotely using video conferencing, telephone calls, or other forms of communication. This type of technology can be used for a variety of different purposes, including providing consultation services, conducting remote patient monitoring, and delivering treatment services.
Wearable devices: Wearable devices are another type of technology that providers in the global home healthcare market use to deliver care. These devices can be worn by patients and used to monitor their vital signs, activity levels, and sleep patterns. In some cases, these devices can also be used to provide treatment services, such as delivering electrical stimulation therapy or administering medication.
Robotic assistants: Robotic assistants are becoming increasingly common in home healthcare settings. These robots can be used to help patients with activities of daily living (ADLs), such as bathing, dressing, and grooming. In some cases, these robots can also be used to provide medication reminders or conduct basic health assessments.
With the advancing medical technology, the demand for IoT devices is witnessing an uptick and the sector is becoming more open to accept newly developed technologies for the ease of patients. In home healthcare market, IoT-enabled devices are being employed to track everything from a patient’s vital signs to the quality of the air in their room. This data can then be sent to doctors or nurses who can use it to improve the quality of care that patients receive. In some cases, IoT devices can even be used to provide treatment directly to patients. One example of an IoT device that is being used in healthcare is the Philips Smart IV Pump. This pump is connected to the internet and allows nurses to remotely monitor a patient’s intravenous (IV) drip rate. The pump also alerts nurses if there are any changes in the drip rate so they can make necessary adjustments.
Innovation Landscape: AI, Machine learning, and Big Data Making Home Healthcare Easier
There is no doubt that AI, Machine learning, and Big Data are supporting the home healthcare market growth. By automating simple tasks, like providing reminders to take medications or checking vital signs, these technologies can help reduce the burden on caregivers. In addition, by collecting and analyzing data from a variety of sources, they can provide insights that can help improve patient care. For example, machine learning can be used to identify patterns in patient data that may indicate a need for early intervention. And by providing access to information about care options and services, big data can help patients and caregivers make better informed decisions about their care.
Currently, the home healthcare market is undergoing a big change thanks to advances in artificial intelligence (AI), machine learning, and big data. These technologies are making it easier for the providers to offer better care to their patients. In the past, home healthcare was often seen as a second-rate option compared to traditional hospitals and clinics. But with the help of AI, machine learning, and big data, home healthcare is becoming more efficient and effective.
For example, AI can be used to help create personalized care plans for patients. This is possible because AI can analyze a patient’s medical history, symptoms, and lifestyle factors to create a plan that is tailored to their needs. Machine learning can also be used to predict when a patient is likely to experience a health problem. This information can then be used to proactively provide care or take preventive measures. Big data is playing a big role in home healthcare market as well. By analyzing large data sets, providers can identify patterns and trends that can help them improve their services. For instance, they may be able to spot areas where patients are not getting the care they need or where there are potential problems with the delivery of care.
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Lack of Reimbursement from Medicare and Medicaid are to Blame as Providers are Struggling to Make Most of Home Healthcare Market
The home healthcare industry has been growing rapidly in recent years, thanks to advances in technology and an aging population. However, government policies are hindering the industry's growth, according to a new report published by SkyQuest Technology Consulting. The report, from the consulting firm found that government regulations and reimbursement rates are preventing providers in the global home healthcare market from expanding their businesses. For example, many states in the US require the providers to obtain a special license to operate, which can be costly and time-consuming. In addition, Medicare reimbursement rates for home healthcare services are often lower than those for traditional medical care. As a result of these obstacles, the home healthcare industry is only expected to grow by 4 percent this year, compared to 7 percent last year. This slower growth could have ripple effects throughout the healthcare system, as it will likely lead to higher costs and longer wait times for patients.
From the last few years, home healthcare market has been witnessing a rapid growth, but providers are struggling to make the most of it due to lack of reimbursement from Medicare and Medicaid. The number of Americans over the age of 65 is expected to more than double by 2050, and the number of people over 85 will quadruple. This aging population will require more health care services, but they will also be more likely to live in rural areas where access to care is limited.
Medicare and Medicaid are the two largest payers for home health care, but reimbursement rates are low. In 2015, Medicare paid an average of $21 per visit for home health services, while Medicaid paid an average of $15 per visit. These rates have not changed much in recent years, even as the cost of providing care has risen. As a result, many providers are struggling to make ends meet.
One way that providers have tried to offset low reimbursement rates is by billing for extra services that are not covered by Medicare or Medicaid. However, this practice is becoming increasingly difficult as insurers crack down on fraud and abuse. In addition, many providers in the home healthcare market rely heavily on referrals from hospitals and nursing homes. But with the rise of accountable care organizations (ACOs), which are groups of providers that agree to be paid a fixed amount for all the care they provide to a specific group of patients, hospitals and nursing homes are becoming more selective about the home health care providers they refer patients to.
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