KEY POINTS

  • US home healthcare is evolving into a massive market for provider organizations. The US home healthcare market is projected to grow about 7% annually from $103 billion in 2018 to $173 billion by 2026 — outpacing growth in all other care types, including hospital care (+5.3% annually) and physician services (+5.6% annually) — and providers must figure out how to tap into the burgeoning space. 
  • The boom in home healthcare will be primarily driven by two factors: the shift to value-based care and an aging population.
    • An emerging reimbursement model that penalizes providers for unnecessary readmissions and low patient satisfaction scores incentivizes providers to keep closer tabs on patients beyond hospital walls — or risk losing revenue.
    • And providers are seeking the best ways to care for a growing senior population that tends to have high healthcare spending and complex needs, like acute illnesses and conditions that can flare up outside the clinic or worsen with travel.
  • US health systems and hospitals are turning to telehealth as a tool to extend care into patients' homes to improve outcomes, reduce costs, and tap into the home healthcare opportunity. Telehealth — including video doctor visits and remote patient monitoring tech — extends the reach of physicians, enables a constant relationship between patients and caregivers, and offers providers a continuous stream of real-time health data. We use a case study about Geisinger Health System to highlight the potential dividends of building a home-based care model facilitated by telehealth: Geisinger cut monthly costs per member by $500 and reduced hospital admissions by 43% with its home healthcare model. 
  • Providers that don't develop home healthcare infrastructure risk falling behind the nearly half of health firms already investing in new tools and care models to deliver home-based care. Providers are making key investments in analytics, telehealth, and staffing to prepare for the rise of home healthcare and stave off competition in the space. 

Introduction

bii us home healthcare marketBusiness Insider Intelligence

US home healthcare is [...]