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 24,400 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 24,400 firms that employ 1.5 million workers and generate $100 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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Dec 1, 2022 - Home Healthcare Insurance Coverage Not Well Understood By Consumers
                                    • 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 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."
                                    • More elderly and disabled people are living at home but are having difficulty finding help to do it safely, according to industry experts. Demand for home healthcare spiked when the coronavirus pandemic frightened people away from nursing homes, where the number of residents declined nationally from about 1.3 million in 2019 to 1.1 million in 2021 and has only partially rebounded in 2022. Low-paid workers quit the home healthcare industry just as demand was spiking, opting for less taxing jobs in Amazon warehouses and as Uber drivers, for example. Industry representatives said there are no quick fixes. Trade associations and other stakeholders are lobbying to block spending cuts for home care under Medicare while advocating for higher compensation. Industry leaders also are examining ways to make homecare work a rung in a health-care career ladder. A third of home-care workers were born outside the US, prompting industry groups to urge Congress to consider special temporary visas.
                                    • E-commerce giant Amazon will close its Amazon Care virtual and at-home care business. Amazon had rolled out a nationwide expansion of Amazon Care, which has virtual and at-home components. The closing was announced shortly after Amazon announced the purchase of One Medical, which combines in-home care teams, in-office providers, and virtual teams to provide health care through its One Medical At-Home service. Amazon is also said to be considering the purchase of Signify Health, a value-based care platform with home-based care capabilities. Many experts say that the combination of One Medical and its subsidiary Iora Health with Signify could give Amazon a very significant at-home care wing.
                                    • 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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