Market Observations
Home Health Market Outlook
- The need for home-based care in the U.S. continues to rise in response to an aging population. By 2030, 18% of the U.S. population will be 65 or older (up from 13% in 2021). An estimated 70% of these adults aged 65+ will likely require some form of long-term care, increasing the need for solutions that support aging at home.
- The home health industry remains highly fragmented despite robust M&A activity over the last few years. Mid-sized metro areas (~500,000 residents) have 26 home health agencies on average, indicating that patients often have multiple agencies to choose from and that few players have achieved national scale.
- Medicare and Medicaid continue grow in importance, accounting for 58.2% of 2024 industry revenue on a combined basis. As of 2024, nearly 50% of Medicare beneficiaries use home health care. Additionally, the Home and Community-Based Services Relief Act, proposed by Congress during 2024, seeks to allocate more Medicaid funding to support home-based health services.
Industry Snapshot
18%
U.S. population will be 65 or older by 2030
58.2%
of 2024 industry revenue from Medicare & Medicaid
~26 agencies
Per mid-sized metro
