Home healthcare services are medical care provided by both certified and unskilled healthcare workers in the ease and convenience of the patient’s home. In addition to his the services offered are Post-Acute Care, Palliative Care, Hospice Care, Nursing Care/Wellness Checks, Specialized Care (Alzheimer’s & Dementia Care, Recuperative Care, Stroke Recovery, and so on), companionship Care, Personal Care, and Other Services (Meals and Nutrition Planning, Pharmaceutical Services, 24-hour Monitoring/Live-in Care, Laboratory and Medical imaging Tests).
The Home Healthcare Services Market is being driven by favorable coverage and investment by private equity firms.
Medicare Part A (Hospital Insurance) and/or Medicare Part B (Medical Insurance) cover qualifying home health services in significant markets such as the United States, as long as patients are homebound and require part-time or intermittent skilled services. In general, a home health care organization arranges the services prescribed by the patient’s doctor or authorized practitioner. The patient’s home health care agency must be Medicare-certified.
Medically necessary part-time or intermittent skilled nursing care, physical therapy, occupational therapy, speech-language pathology services, medical social services, part-time or intermittent home health aide care, injectable osteoporosis drugs for women, durable medical equipment, and medical supplies for use at home are among the home health services that are covered.
In addition, the Centers for Medicare & Medicaid Services (CMS) expects that Medicare payments to home health agencies (HHAs) would increase by 0.7% in CY 2023 compared to CY 2022.
Several private equity firms have begun to engage in the area, citing the lucrative opportunities. For instance,
â€¢ In May 2022, Bow River Capital, a private equity firm completed a strategic investment in Amazing Care, a leading provider of pediatric home health services.
â€¢ In Jan 2022, Health Care At Home India Pvt Ltd (HCAH), a home healthcare services provider secured $15 million from Singapore-based private equity fund ABC World Asia
The Home Healthcare Services Market is being fueled by the rising use of artificial intelligence (AI) in home healthcare.
The application of AI in home healthcare has resulted in a paradigm change in how patients and healthcare providers approach and deliver healthcare to patients in recent years. AI-powered sensors continuously monitor a patient’s health biometrics. Any deviations in readings can promptly send notifications to the appropriate caregiver or agency. AI-powered mobile applications also aid in preventative care by monitoring and controlling medical diseases such as obesity, diabetes, and cardiac issues, as well as keeping food and nutrition records, delivering reports, and alerting concerned caregivers/physicians in the event of deviations. AI-based AI voice assistants may also help with setting up medication reminders, checking vital signs parameters, and scheduling appointments.
â€œâ€¦â€¦The prominence of AI in the home healthcare services market is expected to grow manifolds in the coming yearsâ€¦â€¦AI has the potential to manage complex care plans, streamline operations of home care agencies by optimizing the scheduling and routing of caregivers, and help in data-driven decision-making..â€
– Director, Home Healthcare Service Provider, U.S.
Competitive Landscape Analysis of the Home Healthcare Services Market
Some of the key firms operating in the market include Amedisys, LHC Group (Acquired by UnitedHealth Group), AccentCare, Elara Caring, Interim HealthCare, VITAS Healthcare, James River Home Health, Home Helpers Home Care, Virginia Kares Home Care Services, Companion Extraordinaire Home Care Services, among others.
Organic and inorganic growth strategies used by companies to get a foothold in the home healthcare services market
To increase market share, players in this market are pursuing organic and inorganic development tactics such as acquiring similar businesses, forming alliances, and introducing new services.
? In July 2023, PurposeCare, a leading provider of coordinated home care and home health services in the Midwestern United States acquired three Midwest home care agencies in the Indiana and Ohio markets to expand its footprint
? In Feb 2023, UnitedHealth acquired LHC Group, an in-home healthcare service provider. LHC is now part of UnitedHealthsâ€™ health services division Optum
The Home Healthcare Services Market is projected to gather further momentum in the coming years as a result of the benefits provided by at-home healthcare services such as convenience, cost-effectiveness, hassle-free appointments, personalized attention by the caregiver, decreased risk of infection or virus transmission, government support for home healthcare services in key markets, and aggressive organic and inorganic growth strategies employed by players.