Home Healthcare Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 25,700 home healthcare service firms in the US offer skilled nursing and other types of health-related services in the home. Major service categories include traditional home healthcare services (with or without rehabilitative services), home hospice care, home nursing care, homemaker and personal care, home infusion therapy, and the rental or lease of goods and/or equipment. Companies may specialize in a particular service, such as respiratory therapy or hospice care.
Dependence On Third Party Payers
Home healthcare services providers are dependent on third party payers, including Medicare, Medicaid, private insurance companies, and managed care organizations, as sources of revenue.
Risk Of Malpractice
The inherent risk in providing healthcare outside a traditional setting exposes companies to the risk of malpractice.
Industry size & Structure
The average home healthcare services provider operates out of a single location, employs about 61 workers, and generates $4 million in annual revenue.
- The home healthcare services industry consists of about 25,700 firms that employ 1.5 million workers and generate $116 billion annually.
- The industry is fragmented; the top 50 firms account for 33% of industry sales.
- Large companies include Apria Healthcare, Lincare Holdings, Amedisys, and Kindred at Home (formerly Gentiva Health Services).
Industry Forecast
Home Healthcare Services Industry Growth
Recent Developments
May 1, 2023 - President Biden Ends Covid-19 National Emergency Early
- President Biden signed in April a congressional resolution to bring the US national emergency to respond to the COVID-19 pandemic to a close after three years — weeks before it was set to expire alongside a separate public health emergency. The resolution ends several waivers for federal health programs Medicare, Medicaid, and the Children's Health Insurance Program. Ending the national emergency early could also terminate some of flexibility for the Continuation of Health Coverage program. The Biden administration had set a May 11 deadline for both the national emergency and the public health emergency, giving states the go-ahead to begin winding down the measures enacted under them.
- The COVID-19 national emergency that the US congressional resolution ended provided blanket waivers for federal program conditions including certain requirements for Medicare provider enrollment; requirements for in-person meetings between providers and patients; as well as requiring out-of-state Medicare and Medicaid providers to be licensed in the state where they are providing services. States and territories were also allowed to request additional, time-limited, flexibilities for their Medicaid and Children’s Health Insurance programs. Providers were given the flexibility to administer services in “alternative settings” like unlicensed facilities and temporarily enrolled providers were allowed to forgo requirements like paying application fees or undergoing criminal background checks.
- Some 70% of people want to age at home, yet only 10% have long-term care insurance, according to a HCG Secure/Arctos Foundation study. Tom Beauregard, founder of insurance company HCG Secure, said that there's a need for innovation in this space to cover middle-income families that hope to age at home. "For most people, it's a blind spot — they [mistakenly] think home care will be covered by their [employee] insurance or Medicare," he said. "And most of them can't afford long-term care insurance."
- Legislation that would prevent the Centers for Medicare & Medicaid Services (CMS) from reducing home health payments this year – and until 2026 – was introduced in the US Senate. The Preserving Access to Home Health Act would also “ensure that any adjustments CMS determines to be necessary to offset increases or decreases in estimated aggregate expenditures are made by 2032, such that no cuts would be delayed beyond the end of the budget window,” according to the Partnership for Quality Home Healthcare.
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