How big is the home healthcare industry?
As the population continues to age, home care and home healthcare industry services will continue to grow
According to the U.S. Census Bureau, the home care industry generated revenue of $65.4 billion in 2012, the most recent year for which data is available. That’s more than double the $30.4 billion figure from just 10 years earlier.
The industry’s growth is being driven by two factors: the rapid increase in the number of older Americans, and pressures on the overall healthcare industry to meet the needs of this growing population in a cost-effective way.
Nine out of 10 seniors want to stay in their homes as long as they can, according to the AARP. The census bureau projects that there will be 56 million Americans over the age of 65 by 2020, including 7 million over 85. By 2050, those numbers are expected to reach 84 million for people over 65 and 19 million for people over 85.
BrightStar Care and the home healthcare industry have been expanding to help fill the gaps left by institutional care and keep seniors in their own homes for as long as possible.
Better care at a lower cost
Regulatory changes are having a positive impact on the home healthcare industry, as healthcare providers work to deliver quality care at lower costs. This means keeping patients out of the hospital and in their homes whenever possible, providing the level of care clients need in a more comfortable place, all while keeping down the costs that rack up when a patient spends 24 hours a day in a hospital room when they may only need two hours a day of care.
The home healthcare industry has been reducing costs for years. In 2008 alone, hospital costs were reduced by up to $25 billion thanks to the shift from long-term hospital stays to home health care, according to a study by a Columbia University Professor of Business, and between 1998 and 2008, the percentage of patients discharged from a hospital to home health care rose from 6.4% to 9.9%.
Regulations passed in the years since have brought increased pressure to reduce healthcare costs. Currently, 73% of funding for the home health segment of the industry — $44.3 billion — comes from government sources, mainly Medicaid and Medicare, according to the Wall Street Journal.
In recent years, both the government and large insurers have sought to improve clinical outcomes and reduce overall healthcare costs through Accountable Care Organizations (ACO’s). ACO’s pay healthcare providers, such as hospitals and doctors, a fixed amount of money to care for patients, based on their condition and its severity. One of the keys to improving outcomes is to keep a regular eye on patients and ensure they are managing chronic conditions or completing the steps necessary to recover from surgeries. Skilled home care is an efficient way to provide these services to patients, improving their health without the need for extended or return hospital visits.
Shifting patients to the private-pay home healthcare model doesn’t hurt the quality of care; BrightStar Care franchisees consistently earn accreditation from The Joint Commission, which is the same group that accredits world-renowned institutions like the Mayo Clinic and Cleveland Clinic. The Joint Commission has recognized BrightStar as an Enterprise Champion for Quality for four consecutive years in recognition of our ongoing efforts to help franchisees deliver the highest level of care. This recognition is unprecedented in the home healthcare franchise industry. By providing high-quality care at a lower cost in a more comfortable setting for patients, BrightStar is positioned as an ideal partner for large healthcare organizations looking for a home healthcare provider they can trust. We already have more than 100 national account partners who drive patient referrals to our franchisees, and that number continues to grow.
To learn more, click the link below, or fill out the form to download our free franchise report and start a conversation. You can also call us at 877-689-6898.