U.S. Hospice Market (2026 - 2033) Size, Share & Trends Analysis Report By Type (Routine Home Care, Continuous Home Care), By Location (Hospice Center, Home Hospice Care, Hospital), By Diagnosis (Dementia, Cancer, Respiratory, Stroke), And Segment Forecasts

U.S. Hospice Market Summary

The U.S. hospice market size was estimated at USD 31.2 billion in 2025 and is projected to reach USD 45.3 billion by 2033, growing at a CAGR of 4.8% from 2026 to 2033. The growth of the market is attributed to the rising prevalence of chronic diseases among rapidly growing geriatric populations. In addition, increasing need for quality healthcare services at home along with growing Medicare reimbursement for hospice care is expected to further drive the market growth over the forecast period.

The section below outlines the key factors driving the growth of hospice care services, highlighting the rising geriatric population, increasing prevalence of chronic and life-limiting diseases, and growing demand for compassionate end-of-life care. It also examines the role of integrated palliative support, personalized care approaches, and continuous, home-based care models in strengthening hospice services as a preferred care pathway.

Rising geriatric population and increasing burden of chronic diseases driving demand for hospice care services

The geriatric population is predicted to grow considerably in the future as life expectancy increases. However, this growing population leads to a higher prevalence of chronic conditions such as cancer, dementia, and cardiovascular diseases. These conditions often necessitate specialized end-of-life care, which is effectively provided by hospice services. For instance, according to Hospice News, in April 2025, a report highlighted that over 907,000 Medicare hospice patients in the U.S. were aged 85 and older out of approximately 1.7 million total hospice users, demonstrating the significant reliance of the geriatric population on hospice and end-of-life care services.

Increasing number of hospice centers

The number of hospice centers in the U.S. has been steadily increasing over the years. In 2022 according to CDC, the U.S. recorded approximately 5,800 hospice care agencies, of which 75.6% operated under for-profit ownership. During the same period, hospice services were utilized by nearly 1.8 million patients, reflecting substantial demand for end-of-life care nationwide. This growth is largely attributed to the aging population and an increasing prevalence of chronic diseases, which drive demand for hospice services. Moreover, the market is experiencing a significant shift towards home-based care, driven by technological advancements and evolving patient preferences. Remote patient monitoring tools and telehealth services enable healthcare providers to deliver effective care without requiring patients to leave their homes. These innovations improve care quality and reduce hospital stay costs, making home-based hospice care an attractive option for many families.

Rising Awareness and AI Adoption Driving Hospice Care Growth

Furthermore, the growing awareness of end-of-life care options, particularly hospice care, has significantly influenced its utilization in the U.S. This trend is driven by several factors, including public perceptions, healthcare system dynamics, and the evolving reform for hospice care. As awareness of hospice benefits increases, healthcare providers are more expected to recommend hospice services to patients and families. Organizations such as the National Hospice and Palliative Care Organization (NHPCO) are organizing awareness campaigns that focus on educating both patients and healthcare providers. For instance, the Palliative Care Awareness Campaign initiative provides resources to empower patients and caregivers, emphasizing the importance of integrating palliative care early in treatment rather than associating it solely with end-of-life scenarios. Thus, as awareness continues to increase, it is expected that hospice care will become an even more integral part of end-of-life planning for many Americans.

The growing integration of AI-enabled solutions in hospice care is supporting improved efficiency, compliance, and quality of care across post-acute settings. For instance, in July 2025, Eleos Health expanded its AI-powered platform into home health, palliative, and hospice care. The platform enables providers to reduce documentation time by over 70%, generate compliant clinical notes, and streamline workflows, allowing greater focus on patient-centered care amid rising demand from an aging population.

Market Concentration & Characteristics

The U.S. hospice industry experiences a moderate degree of innovation. Companies are engaged in developing innovative models and programs to enhance patient care. The increasing emphasis on community engagement and supportive care models is strengthening the role of hospice services in the U.S. For instance, in March 2026, National Partnership for Healthcare and Hospice Innovation highlighted that nearly 30,000 volunteers support over 125 nonprofit hospice providers nationwide. Medicare-certified hospices are mandated to contribute at least 5% of total patient care hours through volunteer services, underscoring the integral role of community participation in hospice care delivery.

The industry is experiencing a high level of merger and acquisition activities undertaken by several key players. This strategy enables companies to increase their capabilities, expand their service portfolios, and improve their competencies. For instance, in June 2023, Amedisys and Optum announced their merger, combining two organizations committed to deliver compassionate, value-based, and comprehensive care to patients and their families.

The U.S. hospice industry is growing, coupled with continuous changes in regulatory framework. Key regulatory changes include 36-month ownership rule, special focus program, increased quality reporting requirements, and launch of new measurement tools. Furthermore, state hospice care regulations, which are normally found in administrative codes, cover standards for hospices contracting with state Medicaid programs as well as patient guidelines.

The industry is witnessing high regional expansion. Market players adopt this strategy to expand their service reach and enhance availability across diverse geographical regions by partnering with healthcare providers and practitioners. For instance, in October 2024, VITAS Healthcare, the nation’s provider of end-of-life care, expanded its services to Pasco County. This growth addresses the increasing need for compassionate hospice care in Northern Tampa Bay, providing residents with a trusted option that honors patients’ end-of-life preferences.

Type Insights

Based on type, the Routine Homecare (RHC) segment dominated the market in 2025 and accounted for the largest revenue share of 93.1%. This growth can be attributed to various factors, such as favorable reimbursement policies and increased comfort. RHC is paid under Medicare each day till the patient is under the hospice program. Furthermore, it involves regular visits by registered nurses, hospice physicians, and hospice aids to patient locations. It provides advantages of companionship, family involvement, constant attention, and more.

The inpatient respite care segment is expected to grow at the fastest CAGR from 2026 to 2033. Inpatient Respite Care (IRC) intends to provide temporary or short-term relief to primary care providers. The patient temporarily stays in inpatient hospice centers, such as assisted living facilities or nursing homes, to give primary caregivers a break. This enables primary caregivers to reduce burnout and work efficiently. Recent initiatives in inpatient respite care within U.S. hospice settings are focused on enhancing support for caregivers and addressing the growing demand for specialized care, particularly for patients with dementia and other complex needs.

Location Insights

The hospice center segment held the largest market share of 86.6% in 2025, owing to the various benefits offered by these facilities. These centers prevent the need for hospitalization and offer more balanced and controlled care settings. In addition, growing awareness regarding various advantages, such as 24/7 availability of professional care and emotional support from family members is projected to propel market growth. Many service providers offer hospice inpatient facilities. Hospice centers can be helpful to patients who need round-the-clock care or do not have a caregiver. Rising demand for respite care in order to give personal space to the primary caregiver is contributing to segment growth.

The skilled nursing facility segment is anticipated to grow at the fastest CAGR during the forecast period. High-quality nursing services provided in skilled nursing facilities and increasing occupancy are among factors expected to drive segment growth. Apart from hospitals, skilled nursing facilities have the capability to offer comprehensive care. A rising geriatric population and improving access to skilled nursing facilities owing to supportive reimbursement framework are some of the factors anticipated to drive market growth in the coming years.

Diagnosis Insights

The dementia segment held the largest market share of 25.1% in 2025, owing to the dependency and disability among the elderly, with significant physical and psychological effects on individuals, their families, and caregivers. The rising prevalence of dementia, coupled with an aging population, is driving growth in this segment. In March 2025, the Alzheimer's Association reported that over 7 million were living with Alzheimer’s, projected to reach nearly 13 million by 2050, while one-third of older adults had died from dementia-related conditions.

The cancer segment is expected to grow significantly over the forecast period. This growth can be attributed to the rising number of cancer diagnoses and the increasing need for palliative care services. Hospice care plays a vital role in managing cancer symptoms, alleviating treatment-related side effects, and ensuring comfort and dignity for patients during the final stages of life. According to the National Cancer Institute, in 2025 approximately 2,041,910 new cancer cases were expected to be diagnosed in the U.S. The most common cancers included breast, prostate, lung, and colorectal cancers. Prostate, lung, and colorectal cancers accounted for 48% of cases in men, while breast, lung, and colorectal cancers represented 51% of cases in women.

Key U.S. Hospice Company Insights

Key players operating in the U.S. hospice industry are undertaking various initiatives to strengthen their market presence and increase the reach of their services. Strategies such as expansion activities and partnerships are playing a key role in propelling market growth.

Recent Developments

• In March 2026, a partnership between Forefront Living and the Visiting Nurse Association of Texas was announced to expand hospice services in North Texas, with VNA designated as the preferred provider for outpatient and inpatient hospice care.

• In March 2026, Palladium Equity Partners agreed to acquire a majority stake in DME Express from WayPoint Capital Partners, aiming to expand hospice-related durable medical equipment services across the U.S.

• In January 2026, Bristol Hospice expanded its operations across four U.S. states through de novo facilities and announced plans to enter five additional markets, aiming to broaden geographic reach and enhance access to hospice and palliative care services.

• In October 2024, Compassus and Providence announced a joint venture to enhance home-based care services, including hospice, palliative care, home health, and private-duty caregiving.
  

U.S. Hospice Market Report Scope

U.S. Hospice Market Report Segmentation

This report forecasts revenue growth and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the U.S. hospice market report based on type, location, and diagnosis.

• Type Outlook (Revenue, USD Million, 2021 - 2033)

  • Routine Home Care

  • Continuous Home Care

  • Inpatient Respite Care

  • General Inpatient Care

• Location Outlook (Revenue, USD Million, 2021 - 2033)

  • Hospice Center

  • Hospital

  • Home Hospice Care

  • Skilled Nursing Facility

• Diagnosis Outlook (Revenue, USD Million, 2021 - 2033)

  • Dementia

  • Circulatory/Heart

  • Cancer

  • Respiratory

  • Stroke

  • Chronic Kidney Disease

  • Others