by Post-acute care includes short-term care provided after leaving the hospital to help patients recover from serious illness or injury. This includes skilled nursing facilities, inpatient rehabilitation facilities, long-term acute care hospitals, and home health agencies. Post-acute care services are designed to promote recovery, restore maximum function, and help accelerate a patient’s transition to a lower level of care. The growing aging population and higher incidence of chronic conditions in the U.S. have increased the demand for post-acute care services.
The U.S. post-acute care market is estimated to be valued at US$ 614.2 billion in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in 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, and BayADA Home Health Care. The key players are focusing on mergers and acquisitions to expand their presence and enhance service offerings.
The key opportunities in the U.S. post-acute care market trend include rise in demand for long-term services and supports due to increasing aging population, growing prevalence of chronic diseases, and technological advancements in healthcare IT and telehealth to improve patient care management.
Technological advancements such as the integration of Internet of Things (IoT), artificial intelligence, and remote patient monitoring solutions are helping providers deliver higher-quality and more cost-effective post-acute care services. Telehealth and virtual care models are also gaining traction as they allow remote monitoring of patients, especially during the COVID-19 pandemic.
Market drivers:
The growing geriatric population prone to chronic medical conditions and disabilities is a major driver boosting demand for post-acute care services in the U.S. As per the U.S. Census Bureau, there will be around 93 million adults aged 65 years and older by 2050. Chronic conditions that often require ongoing care like cancer, heart disease, diabetes, and neurological disorders, are becoming more prevalent. This is increasing utilization of post-acute care facilities. Rising healthcare costs is also prompting hospitals to transfer patients to post-acute care sooner to reduce burden on healthcare settings.
Current challenges in U.S. Post-acute Care Market
The U.S. post-acute care market is facing several challenges currently, which include shortage of healthcare staff across various facilities, maintaining quality of care given resource constraints, high care costs, and transitioning to value-based care models. The Covid-19 pandemic has further exacerbated these challenges with increasing demands on an already burdened workforce. Managing costs while ensuring positive health outcomes will require innovation and coordination across different providers in this industry.
SWOT Analysis
Strength: Large existing network of facilities and healthcare providers already serving this market.
Weakness: Rising care costs and aging population is putting pressure on financial sustainability.
Opportunity: Shift towards integrated care models and leveraging technology can help enhance quality while reducing costs.
Threats: Possible over-regulation and policy changes around reimbursement can negatively impact profitability.
Geographic regions
The Northeast region accounts for around 30% of the total market value currently due to its aging population and well-established facilities. The South is the fastest-growing region, projected to increase around 8–9% annually till 2031, led by states like Florida, Texas and North Carolina. Upgrades to meet rising demand coupled with value-based initiatives will likely drive most new investments to this area.
The West coast specifically California, Washington and Oregon, constitute another large segment, contributing over 20% to the total market revenue. Growth has slowed marginally here in recent years, impacted by higher costs of living and delivery of care. However, sophisticated healthcare infrastructure continues to attract more specialized services and modernization projects to these states.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Vaagisha Singh
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups. LinkedIn
