by The U.S. post-acute care market is an integral part of the healthcare system providing rehabilitation, skilled nursing and long-term care services to patients and elderly individuals recovering from illness, injury or surgery. Post-acute care services aid in recovery, restoration of health and functional ability of patients through therapies and nursing care assistance. The increasing geriatric population base and rising prevalence of chronic conditions like stroke, heart disease and musculoskeletal conditions have amplified the demand for post-acute care facilities.
The U.S. post-acute care market is estimated to be valued at US$ 614.2 Bn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the U.S. post-acute care are Kindred Healthcare, Encompass Health Corporation , HCR ManorCare, Brookdale Senior Living, Genesis HealthCare, Amedisys, Inc., LHC Group, Inc., Select Medical Holdings Corporation, Vitas Healthcare , Post Acute Medical, LLC, SavaSeniorCare Administrative Services LLC, LifeCare Health Partners, Extendicare, Ensign Group, Inc., Sunrise Senior Living, LLC, BAYADA Home Health Care. The increasing demand for long-term care due to rising chronic disease prevalence as well as growing focus on reducing readmission rates are expected to boost market growth. Technological advancements in U.S. Post-Acute Care Market Share like remote patient monitoring solutions, mHealth apps, AI and big data analytics are supporting improved healthcare outcomes and quality of services.
Market drivers
The primary drivers augmenting the U.S post-acute care market expansion include rapid growth of the geriatric population base susceptible to disabilities, increasing life expectancy rates and rise in prevalence of chronic illnesses like diabetes, cancer, heart disease etc. As per the UN population data, the share of Americans aged 65 years and above is projected to surge from 16% to 24% by 2060. Additionally, favorable government policies and initiatives aligned with providing high-quality long-term care are encouraging industry players. For instance, the Improving Medicare Post-Acute Care Transformation Act of 2014 was aimed at reforming post-acute care payment systems and enhancing accountability.
Current challenges in U.S. Post-acute Care Market
The key challenges faced by the U.S. post-acute care industry include shortage of clinical staff, tight reimbursement levels from public and private payers, high operating costs, and regulatory pressure to reduce readmissions. The talent crunch is driving up staffing costs at a time when reimbursement rates have failed to keep pace with inflation. The industry is also dealing with increased expectations to coordinate care across different healthcare settings amid value-based payment models prioritizing quality and patient outcomes over volume of services.
SWOT Analysis
Strength: The US post-acute care market has a sizable addressable patient population due to an aging demographic and increasing prevalence of chronic conditions. The variety of care settings offer flexibility to patients.
Weakness: Provider consolidation has made the market landscape relatively concentrated. Facilities face pressures to contain costs and boost efficiency amid a talent shortage.
Opportunity: Growth opportunities exist in expanding service offerings to cover the full continuum of post-hospital care. Telehealth can help address staff shortages and improve access to care in remote/rural areas.
Threats: Changes in reimbursement policies through healthcare reform act as a uncertainty. Economic downturns may impact demand as patients forego optional care.
Geographical regions
In terms of value, approximately 40% of the total U.S. post-Acute Care Market Regional Analysis is concentrated in the South and West regions combined. This is attributed to the large population bases in states like California, Texas, Florida that are growing rapidly.
The Midwest region, primarily led by Illinois, Ohio and Michigan, represents the fastest growing market for post-acute care currently. This growth is spurred by aforesaid states’ aging demographics as well as increasing focus on Medicare population management and reduced readmissions in this region.
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile
