Long Term Care Market Report

Long Term Care Market Analysis by Service (Home Healthcare, Hospice, Nursing Care, Assisted Living Facilities) and Segment Forecasts to 2024

Published: July 2016  |  100 Pages  |  Format: PDF  |  Report ID: 978-1-68038-952-4

Industry Insights

The global long term care market size was valued at USD 705 billion in 2015 and is expected to grow at a CAGR of around 5% over the forecast period. The long term care market is expected to boom owing to the aging baby boomers, increasing disabilities, the dearth of skilled nursing staff, government funding, and increased collaborations of private insurers with the government.

In September 2015, the Housing America’s Older Adults-Meeting the Needs of an Aging Population and Harvard Joint Center concluded in their new research that by 2030, the percentage of people aged over 50 in the U.S. is expected to exceed by 70%. The extended life expectancy has thereby increased the number of disability cases. This is expected to drive the demand for affordable care homes, which offer services for memory care, chronic illnesses, and post-hospital care.

In February 2015, Robert Wood Johnson Foundation and the American Association of Retired Persons (AARP) partnered to organize a nursing campaign. The campaign used the Institute of Medicine (IOM) report as a framework to persuade the nurses to assume a greater role towards the growing and complex healthcare system. This initiative was taken as a step to solve the issue of the dearth ofskilled nursing staff.

Moreover, in January 2016, the AARP declared a free income tax assistance service for people aged 60 and above.The out-of-pocket burden for long term care facilities is high, especially for the nursing care. Medicare pays 50% of the expenses and the introduction of affordable care act is expected to improve the insurance coverage system.The government is taking initiatives to decrease the cost burden on the residents, who cannot afford long term care facilities by improving the healthcare insurance coverage and decreasing the overall premiums required to be paid.

U.S. Long Term Care market, by service, 2013 - 2024 (USD Million)

U.S. Long Term Care market

Services Insights

The home healthcare segment dominated the long term care market in 2015. Nursing homes and hospitals are no more the only options forhealthcare. The rising healthcare expenditure has made home healthcare the de facto for many of the people, who are in need of care. With the increasing demand for home healthcare, the healthcare providers are introducing newer technology and software to improve the quality of care.

The aging boomers are shifting their preference from nursing homes to home or community-based care. In nursing homes, residents aredeprived of the freedom. Moreover, the cost of staying is also a major contributor towards the increasing demand. The hospital stays cost USD 2,000 per day as against USD 44 a day.

The hospice care segment is the fastest growing segment with a CAGR of 7.6%. In June 2013, the Cicely Saunders International and the Commission into the Future of Hospice Care published a report emphasizing on the current and the future demand for hospice care. The increasing need for chronic care, especially Alzheimer’s and Dementia, is expected to further accelerate the demand for hospice care. The hospice care providers are collaborating with other service providers to deliver care in other care settings and care models.

Regional Insights

North America dominated thelong term care marketowing to the increasing aging population, government funding, and the implementation of the streamlined regulatory framework. Around 60% of the funding for long term care in the U.S. comes from the Medicaid. The funding is set to increase with the implementation of the Patient Protection and Affordable Care Act. Under the Affordable Care Act, a separate system named Medicare Prospective Payment System (MPPS) was started to support the long term services. Moreover, insurance payers along with Medicare and Medicaid are funding LTC care solutions so that the mid-aged population benefits from it.

Asia Pacific is expected to grow at the fastest CAGR of 6.2% over the forecast period owing to the increasing number of people diagnosed with chronic illnesses such as diabetes, cardiac disorders, and other respiratory diseases. The market is in the nascent stage and has a huge potential. Moreover, international care homes are also investing in countries such as India and Japan.For instance, in October 2013, BAYADA Home Health Care, a home healthcare giant based in the U.S. acquired 26% stake of India Home Health Care (IHHC).In India, 65% of the hospital visits can be managed at home. Acute care such as injury management, episode of illness or recovery from surgery can be easily given at home eliminating the need to visit a hospital.This offers a potentially untapped market for hospice and home healthcare in India.

Competitive Market Share Insights

Key players of the long term care market are Brookdale Senior Living, Inc., Sunrise Senior Living, Inc., Emeritus Corporation, Atria Senior Living Group, Extendicare, Inc., Gentiva Health Services, Inc., Senior Care Centers of America, Kindred Healthcare, Inc., Genesis Healthcare Corp., and Home Instead Senior Care, Inc.

Market contributors are expanding their capacity to make up for the increasing demand for the adult care. For instance, in May 2016, Brookdale invested USD 8 million on its senior living facility in Florida. The expansion plan was to meet the increasing need for Alzheimer’s and dementia care.

In April 2016, Brookdale Senior Living, Inc. invested USD 1 million to expand its dementia care services by adding 19 apartments to its Clare Bridge Crossings facility.

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