The U.S. post-acute care market provides rehabilitation services and skilled nursing support to patients after hospitalization. It includes services such as home health care, long-term acute care, skilled nursing facilities and inpatient rehabilitation facilities. The demand for post-acute care is rising due to the growing prevalence of chronic diseases among the geriatric population who require long-term medical care and rehabilitation support after being discharged from hospitals.
The U.S. Post-acute Care Market is estimated to be valued at US$ 380.1 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 Fushun Yongmao Construction Machinery Co., Ltd., Furukawa UNIC Corporation, Hitachi Sumitomo Heavy Industries Construction Crane Co., Ltd., KATO Works Co., Ltd., Kobelco Construction Machinery Co., Ltd., Kobelco Cranes Co., Ltd., Liebherr Group, Link-Belt Cranes (a subsidiary of Sumitomo Heavy Industries), LiuGong Machinery Corporation, Manitowoc Cranes, Palfinger AG, SENNEBOGEN Maschinenfabrik GmbH, Sany Group, Tadano Ltd., XCMG Group. The increasing prevalence of chronic diseases, aging population and rising healthcare expenditure are driving the demand for post-acute care services in the country. Various technological advancements such as use of electronic health records, remote patient monitoring devices and telehealth solutions are aiding efficiencies in post-acute care delivery.
Market Trends
Consolidation trend - There is a trend of consolidation in the market with large players acquiring smaller U.S. Post-acute Care Market Growth to expand service offerings and geographical presence. For example, Encompass Health acquired home health provider Addition in 2021.
Rise of telehealth - The Covid-19 pandemic accelerated the adoption of telehealth solutions in post-acute care. Various providers are offering telemedicine, remote monitoring and virtual care to patients at home which is improving access and reducing readmissions.
Market Opportunities
Home-based care models - There is an opportunity for post-acute care providers to develop more home-based rehabilitation programs, chronic care management and transit care to reduce hospital readmissions and shift care to lower cost settings.
Value-based payment models - Government payors are shifting toward value-based reimbursement tying payments to quality and outcomes not quantity of services. Providers can partner with payors and leverage data analytics to develop alternative payment models.
Impact of COVID-19 on U.S. Post-acute Care Market Growth
The COVID-19 pandemic has significantly impacted the growth of the U.S. Post-acute Care Market Challenges And Opportunities. In the initial months of the pandemic, occupancy across post-acute care settings like skilled nursing facilities, inpatient rehabilitation facilities, long-term acute care hospitals, and home health agencies declined sharply as patients and their families opted to delay elective care and therapeutic services due to safety concerns. This led to a steep drop in revenue for post-acute care providers during 2020.
However, with resumption of non-COVID care and development of effective infection control strategies, occupancy rates have gradually recovered over the past year. The demand for post-hospitalization care has risen amid increasing COVID-19 hospitalizations as well. This is prompting more patients to utilize post-acute settings for recovery and rehabilitation. To better address patient needs, providers are increasingly adopting virtual care models and innovative technologies. Telehealth is enabling remote monitoring and facilitating continuity of care. Wearable devices and digital tools are also assisting therapy and improving health outcomes.
Going forward, the post-acute care market is anticipated to grow at a steady pace. The accumulated need for deferred care will boost volumes. Emphasis on early supported discharge and care transition programs to avoid hospital readmissions will further drive market expansion. At the same time, rising labor and supply costs due to pandemic challenges may put pressure on margins. Adaptation of hybrid virtual and in-person care models will remain important for market participants to sustain business and meet evolving care preferences in the post-COVID environment.
Regions in the U.S. Where the Post-acute Care Market is Concentrated
In terms of value, the post-acute care market remains highly concentrated in the Eastern United States region, led by states like New York, Pennsylvania, New Jersey, Massachusetts and Maryland. These states collectively account for over 30% of the national post-acute care spending. Key factors contributing to the concentration include high population densities, greater disease burden and sophisticated healthcare infrastructure with a large number of nursing homes, inpatient rehabilitation facilities and home health agencies. For instance, New York state has over 600 skilled nursing facilities that handle 30% of post-hospital care discharges annually from the state.
Another region dominated by the post-acute care market is California. The Western state contributes approximately 15% to the national post-acute care expenditure. Population growth and stringent hospital readmission reduction targets have strengthened the role of community-based providers here. Cities like Los Angeles and San Francisco have robust networks of post-acute settings that are integral to managing high patient throughputs and transitioning patients efficiently.
Fastest Growing Region in the U.S. Post-acute Care Market
The South central region of the United States is emerging as the fastest growing market for post-acute care. States such as Texas, Florida, Tennessee and Arkansas are witnessing double-digit annual expansions in demand fueled by demographic transitions, policy shifts and healthcare spending increases. For instance, Texas has grown to become the second largest post-acute care state market after New York, with nearly 1 out of 8 skilled nursing facility discharges nationally coming from here. The share of seniors is rising rapidly in the southern states driving more population to seek post-hospitalization support. At the same time, these regions are proactively strengthening continuum of care linkages and integrating community-based services with acute sectors. If the current growth trends sustain, the South central province will likely surpass other traditional strongholds to become the leading post-acute care market in the U.S. over the coming decade.
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About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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