U.S. Long Term Care Software Market Size, Share & Trends Analysis Report By Mode of delivery (Cloud-based, Web-based, On-premises), By Application, By End-use, And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. long term care software market size was valued at USD 1.3 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 11.49% from 2023 to 2030. LTC is gaining high importance in the U.S. mainly due to the increasing health needs of the rapidly aging population. LTC software helps people with their medical and personal care and enables them to live independently. The rising adoption of EHRs and increasing utilization of LTC centers are playing a vital role in expanding the market. Besides this, the increasing prevalence of chronic conditions and the growing geriatric population is boosting the market. Long-term care (LTC) is becoming essential due to aging baby boomers and rising chronic disabilities. According to the WHO, the number of people aged over 60 years and over is expected to increase from 1 billion in 2020 to 2.1 billion by 2050. As older people need more care, this will drive the adoption of LTC software.

The growth of the market is being driven by increasing government programs and initiatives to improve their healthcare infrastructure and deliver affordable care solutions to older people. Medicare and Medicaid provide reimbursement for LTC, which is boosting the market's expansion.

Further, the high prevalence of chronic disorders is a major cause of disabilities requiring medical attention. Based on the data from American Hospital Association, about 133 million Americans, nearly half of the U.S. population, suffer from at least one chronic disease, such as heart disease, arthritis, and hypertension. As per CDC, nearly 1 in 4 American adults have some type of disability. During 2015-2019, around 18.2 million, or 36% of the people aged 65 and above, had at least one disability according to the American Community Survey.

LTC provides efficient workflow techniques that save time and money. They include a centralized database, integrated EHRs, and solutions for revenue cycle management, payroll management, resident care, medication management, clinical documentation, and others. This help to provide effective care to the patients, improve compliance, and reduce cost. In recent years, the shortage of nursing staff and increasing burnout among healthcare professionals in the U.S. has boosted the adoption of healthcare IT solutions.

The COVID-19 pandemic significantly impacted the elderly population, especially those living in long-term care facilities. Many nursing homes succumbed to the infection as nearly 80% of the residents there belonged to a highly vulnerable group. The report from the American Medical Association and the National Center for Support and Living (AHCA / NCAL) in June 2021 surveyed 616 long-term care facilities and found that 94% were understaffed. The high spread of infection and shortage of staff boosted the use of software to manage patients Moreover, the pandemic has increased the adoption of EHR and interoperability solutions in LTC facilities.

Mode of Delivery Insights

Based on mode of delivery, the cloud-based segment held the leading revenue share in 2022. The segment growth is attributed due to the advantages of cloud-based solutions such as cost-effectiveness, fewer operational issues, low investment, flexible cost and usage, and easy implementation procedure with advanced security. The segment is anticipated to witness the highest CAGR during the forecast period.

The cloud-based solutions help in remote monitoring of people and create opportunities for LTC technologies in the market. In addition, increasing demand is expanding the need for cloud-based solutions and the development of new products. For instance, in September 2022, RedSail Technologies, in partnership with Guardian Pharmacy of Indiana, launched Axys, an LTC pharmacy software focused on modern technology and the needs of LTC pharmacies.

The web-based segment is expected to grow owing to the increased use of online platforms. The web-based platforms are considered more susceptible and broader networks as compared to cloud-based and easily accessible by people, these factors are leading the segment growth. On-premise solutions are installed at the user location mostly workstations. This involves high upfront costs, hampering the segment's growth.

Application Insights

In terms of application, the U.S. long term care software market is segmented into electronic health records (EHR), electronic medication administration records (eMAR), revenue cycle management. resident care, staff management, and others. The EHR segment held the largest market share and is expected to grow at the fastest CAGR during the forecast period. The development of long-term care EHR systems is being fueled by increasing public and private financial incentives for EHR implementation.EHR can improve the quality of care in LTC facilities by lowering medication-related errors, enhancing clinical documentation and decision-making, and facilitating health information exchange.

The electronic medication administration record (eMAR) segment is expected to witness a significant growth rate during the forecast period owing to the increasing need for solutions for medication management and adherence. The complex reimbursement process is driving the growth of the revenue cycle management segment.

End-use Insights

In terms of end-use, the market is segmented into home healthcare, hospice & palliative care, nursing homes, and assisted living facilities. The nursing homes segment dominated the market with a share of 40.1% in 2022. Increasing awareness about nursing care services, rising EHR implementation in SNFs, and high patient safety are key factors contributing to the growth of the segment.

Non-communicable diseases are becoming more prevalent due to increasing life expectancy. A sedentary lifestyle is the leading cause of the rise in the prevalence of lifestyle diseases such as diabetes, hypertension, and others. Furthermore, with old age susceptibility to infectious diseases increases. This is increasing the number of admissions in nursing homes, thereby favoring segment growth.

The home healthcare agencies segment is projected to exhibit the maximum CAGR during the forecast period. Increasing preference for care at home among the elderly and a rising number of remote monitoring solutions enabling independent living are rendering high growth to the segment. The segment is likely to benefit from technological advancements such as telemedicine, mhealth apps, and internet-enabled home monitoring.

Key Companies & Market Share Insights

Some of the strategies undertaken by key players to strengthen their market presence include collaborations, software enhancements, and mergers & acquisitions. For instance, in February 2022, to improve transparency in its 92 skilled nursing institutions, Creative Solutions in Healthcare (CSNHC) introduced a new software platform called Connected Care Center With the help of this platform, patients and their families can access health data from anywhere at any time. In October 2022, the American Health Care Association (AHCA) announced a partnership with PointClickCare for Long-Term Care Data Cooperative. The companies will work together to develop a comprehensive health records solution. Some of the prominent players in the U.S. long term care software market include:

• Allscripts Healthcare, LLC

• Oracle

• MatrixCare

• Yardi Systems, Inc.

• Netsmart Technologies, Inc.

• eFileCabinet, Inc.

• VITALS SOFTWARE

• PointClickCare

• Medtelligent, Inc.

• AL Advantage, LLC

• Genexod Technologies LLC 

U.S. Long Term Care Software Market Report Scope

U.S. Long Term Care Software Market Segmentation

This report forecasts revenue growth at country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. long term care software market report based on mode of delivery, application, and end-use:

• Mode of Delivery Outlook (Revenue, USD Million, 2018 - 2030)

  • Cloud-based

  • Web-based

  • On-premises

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Electronic Health Records

  • Electronic Medication Administration Record (eMAR)

  • Revenue Cycle Management

  • Resident Care

  • Staff Management

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Home Healthcare Agencies

  • Hospice & Palliative care

  • Nursing Homes

  • Assisted Living Facilities