• 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. 


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US home healthcare is [...]