The U.S. Long Term Care (LTC) market size was valued to be over USD 333.7 billion in 2016 and is anticipated to grow at a CAGR of 6.4% over the forecast period. Recognition of unmet needs of elderly, which are not fulfilled by hospital settings, is a major contributing factor responsible for market growth.
Unnecessary hospitalization often results in higher expenditure and degrades quality of life. Thus, increasing preference for the long-term care settings such as home care, nursing homes, hospices, and assisted living facilities by the baby boomers in the U.S. drives the market growth.
U.S. Long Term Care (LTC) market, by Service, 2013 - 2024 (USD Billion)
In 2012 to 2050, the U.S. is likely to witness considerable growth in its geriatric population (aged more than 65). In 2050, geriatric population is expected to reach 83.7 million, which is more than double the population in 2012. Moreover, prevalence of chronic diseases is high in the recent years in the U.S. and becomes a major cause of disability requiring medical care. Along with general age-related disabilities, the elderly also suffer from chronic diseases such as heart problems, Alzheimer’s, dementia, and mental stress. Certain chronic diseases such as hypertension and depression require high costs for treatment. Hospitalization proves to be expensive and entails unnecessary use of resources, which can be utilized by patients in critical conditions.
Employers are taking initiatives to provide LTC services to their employees. For instance, Medtronic sponsors a group LTC insurance plan for their employees. This plan is aimed at protecting employees from high costs associated with LTC services in home, community care, and assisted living facilities.
Nursing care accounted for the largest segment of this market in 2016. This can be attributed to huge dependent population, high cost of service, and presence of a large number of market players.
Hospices are anticipated to witness lucrative growth over the forecast period due to increasing prevalence of chronic diseases and need for 24 hours medical attention. According to the National Hospice and Palliative Care Organization, in 2011, around 1.6 million received hospice care. Approximately 45% people who died in the U.S. received hospice care, though majority received only for few days.
Recently in January 2017, President Donald Trump signed an executive order to cut burdensome regulations on American businesses and decrease regulatory spending. Thus, with the new order, home health care organizations are expected to observe several opportunities due to reduction of regulations that were detrimental to small businesses in America.
Key industry contributors are Brookdale Senior Living Solutions; Sunrise Senior Living, LLC; Atria Senior Living, Inc.; SeniorCare, Inc.; Kindred Healthcare, Inc.; Genesis Healthcare; Five Star Senior Living; and Home Instead, Inc.
According to the CDC data, in 2014, about 67,000 paid and regulated LTC service providers served about 9 million patients in the U.S. and the services are provided by nursing homes, adult day care service centers, home health agencies, hospices, assisted living, and other residential care centers.
According to the new insurance policy declared in February 2017, the cost of insurance coverage rose by 6% to 9% than in 2016. However, the cost of insurance for single men above 60 years declined up to 20%. These changing policies may cause fluctuations in the market growth up to some extent over the following years.
Attribute |
Details |
Base year for estimation |
2016 |
Actual estimates/Historical data |
2013 - 2016 |
Forecast period |
2017 - 2024 |
Market representation |
Revenue in USD Billion & CAGR from 2017 to 2024 |
Regional scope |
U.S. |
Report coverage |
Revenue forecast, company share, competitive landscape, growth factors & trends |
15% free customization scope (equivalent to 5 analyst working days) |
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This report forecasts revenue growth and provides an analysis on the industry trends in each of the sub-segments from 2013 to 2024. For the purpose of this study, Grand View Research has segmented the U.S. long-term care market based on service:
Service Outlook (Revenue, USD Billion; 2013 - 2024)
Home health care
Hospices
Nursing care
Assisted living facilities
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